Compulsory acquisition of land in Western Australia: a practical guide for landowners
Compulsory acquisition (sometimes referred to as “taking”) is when a government authority acquires private land, or an interest in land, without the owner’s consent for a public purpose. Public purposes commonly include infrastructure such as roads, rail and utilities (water, gas or electricity).
In Western Australia, the compulsory acquisition process is mostly governed by the Land Administration Act 1997 (WA) (LA Act), particularly Parts 9 and 10, which set out notice requirements and a framework for compensation.
What can be acquired, and by whom?
The LA Act allows an “acquiring authority” to take land (or interests in land) for a “public work”. Interests that can be taken include freehold title, Crown land title, leases, easements, mortgages and native title rights.
How the compulsory acquisition process usually unfolds
Surveys and investigations: the acquiring authority may seek access to land for surveys and site investigations. In some cases, the Minister for Lands may authorise early entry for preliminary activities.
Negotiation: the process usually starts with the acquiring authority attempting to acquire the land by agreement. It is at this stage where an acquiring authority must give the impacted owner or interest holder an approved information statement.
Notice of Intention to Take: if agreement is not reached, a notice of intention to take may be issued, registered on title and served. Registration can restrict dealings with the land and prohibit construction of buildings or improvements without the Minister for Lands’ consent.
Objections: eligible parties, including owners and occupiers, can object to the NOITT within the stipulated timeframe (often 60 days). Compensation is not a ground of objection and is dealt with after the taking.
Taking Order: if the taking proceeds, a Taking Order is made and registered on title. On registration of the Taking Order the land and affected interests transfer to the State (or are extinguished) and are converted into a right to claim compensation.
Compensation: usually further attempts are made to negotiate compensation after the Taking Order is registered. If compensation still cannot be agreed, it may be determined by the State Administrative Tribunal or the Supreme Court.
Once a Taking Order is registered, the pathway to compensation is time-sensitive. Understanding the steps and timeframes, and compiling the right evidence, can make a material difference to the outcome.
Compensation under Part 10
Compensation is intended to compensate owners and interest-holders for losses caused by the compulsory acquisition. While each claim is different, similar issues can often arise in most claims.
Time limit: a claim generally must be lodged in the approved form within 6 months of registration of the Taking Order. The claim should include full particulars of each component, and further particulars may be requested.
Offers and negotiations: after considering your claim, the acquiring authority may issue an Offer of Compensation. If you reject an offer, you generally must do so in the approved form and within the required timeframe.
Determination of compensation: if agreement cannot be reached, the matter may be determined by the State Administrative Tribunal or the Supreme Court.
Common components of compensation include:
Market value of the land or interest taken.
Impacts on any remaining land where only part is acquired.
Disturbance and associated costs, such as relocation/removal costs, business disruption and certain professional fees.
Valuation involves a degree of judgement and can be contentious, particularly where only part of a property is taken or the taking affects how the remaining land can be used. The assumptions made by the valuer, and the facts on which they rely, can often have a significant effect on their final assessment of value.
In certain circumstances, a well-evidenced claim may require other expertise in addition to valuation evidence, such as town planning, environmental or engineering evidence.
Summary
Compensation claims are often complex and depend on valuation methodology, the quality of supporting documents, and compliance with strict statutory timeframes and processes. Missing a deadline or not following the required steps can delay negotiations and, in some cases, affect your ability to recover the full amount you are entitled to claim.