The first formal step in the compulsory acquisition process is the issue of a proposed acquisition notice (PAN) by the acquiring authority to the landholder. The PAN includes:
- a description of the land
- the authority of the State proposing to acquire the land
- the period of time within which the land will be compulsorily acquired.
An acquiring authority cannot compulsory acquire land unless a PAN has been given to the landholder.
The landholder and the acquiring authority can continue to negotiate at this stage of the compulsory acquisition process. If agreement is reached, the acquisition may be finalised by a contract and transfer or formal agreement under section 30 of the Land Acquisition (Just Terms Compensation) Act 1991.
The Act also requires for 90 per cent advance payment of compensation where the amount of compensation is disputed, provides solatium for a principal place of residence and includes objection and appeal rights to the Land and Environment Court.
Section 39 claim for compensation
When the proposed acquisition notice has been issued, the landholder should complete a section 39 claim for compensation form and submit it to the acquiring authority. Completing this form ensures the landholder’s issues and concerns are recorded and brought to the attention of the Valuer General. It will also allow any supporting information such as valuation reports and town planning information that the landholder has provided to the acquiring authority to be referred to the Valuer General. When assessing the amount of compensation the valuer must consider the information provided by the landholder on the claim for compensation form.