Understanding Compulsory Acquisitions of Land by the Government

The recent announcement of the Pioneer-Burdekin Pumped Hydro project by the Queensland Government has caused concern to many local property owners.  As announced, 50 properties in Netherdale may have to be acquired by the Government for the project.

Property owners subject to acquisition under this project, and others like it, should ensure that they are aware of the process and their rights.

What is acquisition of land?

At both a state and federal level, the Government has the power to acquire land from private landowners in a range of situations.  Land can be acquired by negotiation or through a compulsory acquisition process, known as land resumption.

At a federal level, the ability for the Government to compulsorily acquire land is established under the Australian Constitution.  In Queensland, there are a number of pieces of legislation relevant to compulsory acquisition, including the Acquisition of Land Act 1967 and State Development and Public Works Organisation Act 1971.

Compulsory acquisitions of land typically occur as a result of major governments project such the development of a road or school. Acquisition is not always for the entirety of someone’s land and can be for only a part.  An acquisition can also take place in the form of an easement.

What is the acquisition process?

After the Government decides that land is to be acquired, affected persons will receive a ‘Notice of Intention to Resume’ (“Notice”) from the government authority handling the process.  A Notice must be sent to anyone who the Government is aware has an interest in the land, including lessees.

For a Notice to be effective it must meet a number of requirements.  It is important that recipients of a Notice seek legal advice to ensure that the Notice complies with the legislation.

If an affected person consents to the acquisition, or the acquisition is found to be necessary despite any objections, the Government will then move forward with the acquisition process.

The Government must provide affected persons with a draft agreement for the acquisition of their land.  Agreements drafted by the government in these circumstances must also meet several requirements.  Again, it is important to obtain legal advice to ensure that the agreement is effective and fair.

Objecting to the acquisition of land

Affected persons have a right to object to the process.

Objections must meet a number of requirements and be made within the time period stated in the Notice.  The period stated in the Notice must not be less than 30 days after the date of the Notice.  Objections will be decided by the Government body handling the resumption.

If an affected person is unhappy with the result of their objection, there are avenues to challenge the decision in the Supreme Court.

Will I be compensated?

The Government must fairly compensate landowners for acquired land.  The compensation for the land must be calculated with reference to the ‘highest and best use’ of the land.  Generally, this will be taken to mean the market value of the land at the time of the acquisition.

The Government must make all known affected persons an offer of compensation if land is to be taken.  If an affected person disagrees with the offer, they can reject it and refer the assessment of compensation to the Land Court.

Affected persons also have a right to be compensated for disturbance costs.  Disturbance costs include legal costs, costs of valuations, costs of purchasing a new property and business interruption.

Conclusion

If you receive a Notice as a result of the Pioneer-Burdekin Pumped Hydro Dam or another project, we encourage you to seek legal advice before agreeing to the acquisition or any offers of compensation.

Obtaining legal advice will allow you to ensure that the land is being taken in the correct manner and the compensation paid to you is fair.