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Legislation

The Compulsory Acquisition (Just Terms Compensation) Act 1991 (the Act) requires the Valuer General to determine the amount of compensation to be offered to a former land owner where land is compulsorily acquired (section 47). Compensation must be determined in accordance with the Act.

Section 3 of the Act sets out the objects of the Act as:

  • To guarantee compensation will be no less than the unaffected value.
  • To ensure compensation on just terms where land is acquired by an authority and is not available for public sale.
  • To establish new procedures to simplify and expedite the acquisition process.
  • To require an authority of the State to acquire land designated for a public purpose where hardship is demonstrated.
  • To encourage the acquisition of land by agreement instead of by compulsory process.

Section 54 of the Act requires that compensation must be such amount, having regard to all relevant matters under Part 3, to justly compensate the former land owner for the acquisition of the land.

The relevant matters determining compensation are:

  • the market value of the land
  • any special value to the former land owner 
  • any loss attributable to severance
  • any loss attributable to disturbance
  • the disadvantage resulting from relocation
  • any increase or decrease in the value of any other land owned by the former land owner at the date of acquisition, which adjoins or is severed from the acquired land by reason of the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired.

Further details are available on the definition of terms page.

The Act applies to land acquired, by agreement or compulsory process, by an authority which is authorised to acquire land by the compulsory process.

Section 5 of the Act provides that the Act does not apply to land which is available for public sale and which is acquired by agreement.

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