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Compulsory acquisition

I received a Proposed Acquisition Notice

A Proposed Acquisition Notice (PAN) is the formal notice the acquiring authority gives before it compulsorily acquires your land under the Land Acquisition (Just Terms Compensation) Act 1991. It is not merely a negotiating letter. It begins a statutory pre-acquisition process with fixed timeframes, including a period for lodging a compensation claim. What you do after receiving it can materially affect negotiations, the evidence available and your ultimate compensation position.

Jurisdiction
New South Wales
Page type
Situation guide
Timing
Time-sensitive
On this page

This page may be relevant if:

  • You have received a document headed 'Proposed Acquisition Notice'
  • An authority has written to you about acquiring all or part of your land
  • You want to understand the deadlines the notice has started
  • You are deciding whether to negotiate, make representations or prepare your compensation claim

What this usually means

  • A PAN signals an authority's intention to acquire your land by compulsory process, and is given before the acquisition is finalised.
  • The notice ordinarily runs for a minimum period before the acquisition can be completed by a notice published in the Government Gazette.
  • You may object to the amount of compensation in the Land and Environment Court once the compensation notice has issued; challenging the validity of the acquisition itself is a separate matter, pursued by judicial review in the Supreme Court.
  • Receiving a PAN does not stop you negotiating; many matters are still resolved by agreement on improved terms.

What commonly matters

  1. The compensation claim period

    The PAN requests an owner seeking compensation to lodge a claim within the period specified in the notice, which must be at least 60 days after the notice is given. A separate period for objecting to the amount offered generally arises later, after a compensation notice is received.

  2. Agreement or compulsion

    A PAN does not foreclose negotiation. Settling by agreement can secure better terms than letting the process run to gazettal.

  3. What is actually being taken

    Whether the authority is taking the whole site, part of it, or an easement changes the impact on the rest of your land, and the compensation.

  4. Early evidence

    Valuation, disturbance and business-impact evidence gathered early shapes the claim that follows the acquisition.

How we help

  • Explain what the notice means and identify the pre-acquisition and compensation-claim deadlines it starts
  • Advise on negotiations, representations and preparation of your compensation claim
  • Advise on any later compensation notice and, where appropriate, prepare and run an objection in the Land and Environment Court
  • Coordinate valuation and disturbance evidence and frame your compensation claim

This page is general information only and is not legal advice. It may not be current, and how the law applies depends on the specific facts. For advice on your situation, contact Stone & Pillar Legal.

Frequently asked questions

General information only, not legal advice. The position depends on your circumstances.

What is the minimum notice period under a Proposed Acquisition Notice in NSW?

Under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), a Proposed Acquisition Notice generally must give at least 90 days before the authority can complete the acquisition by publishing an acquisition notice in the NSW Government Gazette. That period is intended to allow time to make representations, negotiate or seek advice, and in practice gazettal sometimes occurs somewhat later than the 90-day mark. Because the exact dates turn on when and how the notice was given, the timing in a particular case should be checked against the specific notice.

Can I stop the compulsory acquisition of my land after receiving a PAN?

A Proposed Acquisition Notice begins a statutory process, and in practice a landowner usually cannot prevent a properly authorised acquisition from proceeding. The notice period generally allows time to make representations to the authority and to negotiate over what is taken and the terms, while a challenge to the validity of an acquisition is a separate matter that would commonly be pursued by judicial review in the Supreme Court rather than through the compensation process. Whether any grounds to challenge exist depends on the facts and the authority's powers, so the specific notice should be reviewed promptly.

Who decides how much compensation I get when my land is compulsorily acquired in NSW?

After land is acquired under the Just Terms Act, the amount of compensation is initially determined by the Valuer-General, and the acquiring authority generally must give the former owner a compensation notice setting out the offer within 45 days of the acquisition notice being published (a period the Minister can extend in limited circumstances). A person who has claimed compensation and disagrees with the amount may generally lodge an objection with the Land and Environment Court within 90 days of receiving that notice, in the Court's Class 3 jurisdiction. The right to object belongs to a person who has claimed compensation, and a compensation notice can arrive before any claim has been made, so it is worth checking early that a claim has been lodged. The compensation payable depends on the facts, including valuation and disturbance, so the timeframes and the offer should be checked against the specific notice.

What happens if I do nothing after receiving a Proposed Acquisition Notice?

If no action is taken, the authority can generally proceed to acquire the land by publishing an acquisition notice in the Gazette once the notice period has run. If a later compensation offer is not accepted and no objection is lodged with the Land and Environment Court within the 90-day period, the right to object to the amount is generally lost (a late objection is only sometimes allowed for good cause) and compensation is generally fixed at the amount offered. Because these timeframes are short and strict, the position should be checked promptly against the specific notice.

Where to start

Has a proposed acquisition affected your land?

A preliminary review can identify the interest affected, the material available, any stated date and the questions requiring legal or valuation assessment.

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