Property Law

Compulsory acquisition is an important point of law. It allows a sovereign government power to acquire private property for provision of essential services. In using their compulsory acquisition or land resumption rights, governments are obliged to exercise power fairly and equitably. A basic standard dictates the compulsory acquisition or land resumption process should leave land owners no worse off.

Protecting your rights to this basic standard can become adversarial. Authorities and land owners rarely agree on what constitutes no worse off. Land owners’ access to the basic standard can be complicated by:

• Other laws
• Acquisition method
• Essential services privatisation
• Representative’s skill and expertise

See how GMacq services are working with communities in some Current Projects.

Other law affects the process
In Australia, Federal and State governments exercising land resumption power are bound by a specific law. The law sets out a clear compulsory acquisition process.

Most essential services are delivered by government departments or agencies that also have the power to buy land or property. Sometimes, the law asserts a right to occupy and construct without an agreement. The Water Act (Vic) 1988 is an example of this.

So, another law may affect things. This can create obstacles to proper land resumption or compulsory acquisition process (The Land Acquisition and Compensation Act (Vic) 1986).

Which method of acquisition?
There are two methods of acquisition:

1. Private treaty
All government departments and agencies begin with private negotiation. This method is simpler and more cost effective for them.

For land owners, this is the poorer method. Compensation is narrow and not effectively considered over the whole project life, from pre-construction to deployment.
The private treaty method greatly favours the government department or agency.

2. Compulsory Acquisition or Land Resumption
The compulsory acquisition or land resumption method involves a set process. The law attempts to balance the interests of both an acquiring authority and the property owners. With proper professional advice, land owners gain better representation and access to fair compensation.

When essential services are privatised
Privatised essential services complicate land owners' rights. Commercial ethic, profits and shareholder returns are the driving force. Origin Energy, Alinta Gas and SP Ausnet are some examples.

A private company will seek to minimise compensation and improve their bottom line.

Do not sign or agree to anything.

Your representative's skill level
The road to proper and fair compensation can be complex and uncertain. You need reliable advice to work through issues as they arise.

You don't need to manage alone. Your rights under compulsory acquisition or land resumption law include the cost of professional representation.

Contact GMacq for the facts on government land resumption power and your rights under compulsory acquisition law.