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Practice area

Compulsory acquisition and compensation

If a public authority has approached you about acquiring your land, sent an acquisition notice or made a compensation offer, we can help you understand your position and the next steps.

Jurisdiction
New South Wales
Last reviewed
1 May 2026
Reading time
7 min

New South Wales

The path of a public project across land.

On this page

How we help

  • Proposed acquisition notices and acquisition notices
  • Just terms compensation claims
  • Market value and special value
  • Severance and injurious affection
  • Disturbance and business relocation claims
  • Negotiation with acquiring authorities
  • Land and Environment Court Class 3 proceedings

We advise landowners and businesses affected by compulsory acquisition on the acquisition process, compensation and related disputes. We can assist with reviewing notices and offers, working with valuers and other advisers, negotiating compensation and conducting Land and Environment Court proceedings.

When an authority takes land for a road, rail line, utility or other public project, owners, and often tenants and businesses as well, are entitled to compensation. In New South Wales that compensation is assessed under the Land Acquisition (Just Terms Compensation) Act 1991. How the claim is framed, and the evidence assembled behind it, can change the result materially.

If a project has been announced but nothing has arrived yet, NSW Project Watch lists public projects that may affect land, with the official source for each.

The acquisition process

The formal process usually begins with a proposed acquisition notice and moves through defined steps and timeframes. Acting early preserves your ability to negotiate and, if it comes to that, to challenge the compensation determined.

Heads of compensation

Compensation is assessed under statutory heads and is not confined to market value. Depending on the interest acquired and the facts, other heads may require consideration, subject to the Act.

  • Market value of the land acquired
  • Special value to the owner beyond market value
  • Severance, the reduction in value of land you retain
  • Injurious affection from the public purpose
  • Disturbance: legal and valuation costs, relocation costs, replacement-property duty and mortgage costs, and other financial costs relating to the actual use of the land that are a direct and natural consequence of the acquisition (which is where a business’s relocation and other financial costs are assessed; lost profits as such are not a separate head)
  • Disadvantage resulting from relocation (formerly solatium), for being dispossessed of a principal place of residence

Loss attributable to disturbance should be assessed against the statutory categories and supported by evidence of the cost or loss claimed.

Valuation evidence

Independent valuation evidence is central in many compensation claims. The valuation method, comparable evidence and any before-and-after analysis should be matched to the interest acquired and the statutory question.

For how a compensation objection differs from an appeal against a land valuation, see Valuation and compensation objections.

Class 3 proceedings

Where compensation cannot be agreed, the dispute can be determined by the Land and Environment Court in its Class 3 jurisdiction. We advise on prospects, including the costs, time and risks of proceeding, and represent owners, tenants and businesses through that process.

Tenants, business operators and other interest-holders may hold entitlements of their own; they need to be identified before they can be claimed.

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.

Before a notice arrives

A public project can begin affecting a property long before formal acquisition

By the time a Proposed Acquisition Notice arrives, many of the decisions that shape a landowner's position have already been made. Route investigations, option announcements, preferred designs, survey access, planning approvals and environmental assessment can all affect land before any formal acquisition begins, whether through temporary occupation, construction compounds, easements, construction leases, access changes, partial acquisition or business disturbance.

Recognising this early is what creates options: time to check the official record, preserve evidence of how the land and any business are used today, understand the interest that may be affected, and respond on a considered basis rather than under pressure.

  1. 1

    Early investigation, route identification or corridor protection

    An agency studies options and may protect a corridor. Nothing may be visible on your title yet, but early decisions can already affect value and options.

  2. 2

    Preferred option, concept design or project announcement

    A preferred route or design is announced. This is often the first clear signal that particular land may be affected.

  3. 3

    Planning approval, environmental assessment or public exhibition

    The project is assessed and exhibited. Documents on exhibition can reveal alignments, work sites and likely property impacts.

  4. 4

    Survey access, geotechnical works or investigation access

    The agency may seek access to investigate land. Access does not, by itself, mean a property will be acquired.

  5. 5

    Negotiation or acquisition by agreement

    Authorities often try to acquire, or secure an easement, by agreement before any formal notice. The terms agreed here matter.

  6. 6

    Proposed Acquisition Notice

    A formal step signalling an intention to acquire, which starts time periods that matter. Early advice is valuable at this point.

  7. 7

    Valuation, evidence-gathering and compensation claim

    Valuation and other evidence is assembled to support a compensation claim, across market value, disturbance, severance and other heads.

  8. 8

    Objection, negotiation, settlement or Land and Environment Court proceedings

    If compensation is disputed, there are negotiation and review pathways, including proceedings in the Land and Environment Court.

How we assist

How Stone & Pillar Legal can assist

Senior-led, practical advice for private landowners, businesses and advisers, focused on understanding the position early and responding on a considered basis, not under pressure. We do not promise outcomes; we help you make informed decisions.

Early project risk assessment

An early read on whether and how a project may affect your land, access or compensation position.

Reviewing notices, letters and maps

Working out what a notice, letter or alignment map actually means for you, and what it requires.

Identifying the interest affected

Pinning down exactly what is proposed to be acquired or affected: surface, subsurface, easement or access.

Preparing for meetings with the authority

Helping you prepare for discussions with the acquiring authority and understand what to expect.

Working with valuers and experts

Coordinating with valuers, planners, surveyors and other experts so the evidence is in order.

Compensation strategy

Identifying the heads of compensation that may apply and how to approach them on just terms.

Business disturbance and relocation

Advising on business-impact and relocation issues where a business is affected.

Partial acquisition and retained land

Severance, injurious affection and the value and usability of land you keep after a partial acquisition.

Easements, leases and temporary occupation

Reviewing easement terms, construction leases and temporary-occupation arrangements before you sign.

Objections, disputes and the Land and Environment Court

Advising on objection, negotiation and Land and Environment Court pathways where compensation is disputed.

Questions

Common questions

How do I know whether my property may be acquired?

The clearest indication is correspondence from the acquiring authority. Otherwise, the published alignment, planning and environmental documents and project maps can show whether land in your area is within a project footprint. A project being announced near you does not, by itself, mean your property will be acquired. If you are unsure, check the official sources and get early advice.

Can a government project affect my land before a Proposed Acquisition Notice?

Yes. Land can be affected by route investigations, survey access, planning and environmental assessment, design changes, construction planning and negotiations well before any formal notice. These early steps can also affect value, evidence and the options available to you.

What is a Proposed Acquisition Notice?

In NSW, a Proposed Acquisition Notice is a formal step in the compulsory acquisition process under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). It signals an intention to acquire and starts time periods that matter. If you receive one, it is sensible to get advice promptly.

Acquisition notices & process
What if only part of my land is required?

Partial acquisition raises particular issues, including severance, the effect on the land you keep (injurious affection), access, and the value and usability of the retained land. These can be significant and are worth assessing carefully.

What if the project only requires an easement?

Easements are common for transmission, pipeline and utility projects. Rather than taking your whole property, the authority acquires a right over part of it. The easement terms, width, location, ongoing restrictions and compensation all matter, and are worth understanding before you agree.

What if the authority wants access for surveys or investigations?

Authorities often seek access to survey or investigate land early in a project. Access of this kind does not necessarily mean a property will be acquired. It can be worth understanding the basis for the access, any conditions, and keeping a record of what is done on your land.

What if my business is affected but my land is not acquired?

Business-related financial costs are most often dealt with as part of disturbance compensation where an interest in land is acquired; lost profits as such are compensable only in confined circumstances. Where your land is not acquired but your business is affected by nearby works, the position is more complex and depends on the circumstances. Early advice helps identify whether any entitlement or other remedy may be available.

Should I speak to the acquiring authority before getting advice?

Authorities often engage early, and you can speak with them. It is generally sensible to understand your position, particularly on value, easement terms or access, before you agree to anything or sign. Getting advice early does not prevent a constructive relationship with the authority.

What documents should I collect?

Useful documents to collect include:

  • a title search and deposited plan
  • any notices or correspondence from the authority
  • valuation or rating material
  • project maps
  • lease or easement documents
  • if a business is affected, business records

Photos and notes of meetings also help.

Can I object to the amount of compensation?

In NSW, if you disagree with the compensation determined after acquisition, there are objection and review pathways, including proceedings in the Land and Environment Court. A person who has lodged a claim for compensation can object to the Court within 90 days after receiving the compensation notice, so early advice matters.

These answers are general information only and are not legal advice.

Selected experience

Compulsory acquisition & compensation experience

Michael's compulsory acquisition experience spans both sides of these matters, including time advising acquiring authorities in earlier government and major-firm roles. Stone & Pillar Legal acts for affected owners, businesses and developers, not for acquiring authorities. Having worked within the process gives the firm a practical understanding of how authorities assess, value and negotiate, which informs the way it prepares an owner's claim. His experience has included NSW Land and Environment Court Class 3 proceedings, Sydney Metro and WestConnex acquisitions, hospital and transport infrastructure projects, easement and partial acquisitions, business disturbance issues, Roads Act 1993 powers of entry, and strategic input on valuation evidence and compensation.

Sydney Metro, proposed Sydney Science Park

Yes
Authority
Sydney Metro
Client / party
Landowner / developer
Experience
Acted in compensation proceedings concerning Sydney Metro's compulsory acquisition of land for the proposed Sydney Science Park.

Sydney Metro, 9 Hunter Street

Yes
Authority
Sydney Metro
Client / party
Commercial property interest
Experience
Advised on compensation issues arising from Sydney Metro's compulsory acquisition of 9 Hunter Street.

Gaudioso / Parramatta Road, Camperdown

Yes
Authority
Transport for NSW / RMS
Client / party
Landowners
Experience
Acted in a WestConnex compensation valuation dispute concerning acquired commercial properties on Parramatta Road.

Olde English Tiles

Yes
Authority
Transport for NSW / RMS
Client / party
Business occupier
Experience
Worked on issues concerning business disturbance, occupation rights and whether an informal licence gave rise to a compensable interest in land.

WestConnex

Yes
Authority
Transport for NSW / RMS
Client / party
Landowners
Experience
Acted for landowners in compulsory acquisition compensation matters arising from WestConnex.

Rozelle Interchange Project

Yes
Authority
Transport for NSW / RMS
Client / party
Acquiring authority
Experience
Advised on compensation challenges concerning compulsory acquisition of land for the Rozelle Interchange Project.

Randwick Hospital redevelopment

Yes
Authority
Health Infrastructure
Client / party
Acquiring authority
Experience
Acted in NSW Land and Environment Court compensation proceedings concerning land acquired for the Randwick Hospital redevelopment.

Sydney Harbour Bridge Cycleway Project

Advisory
Authority
Transport for NSW
Client / party
Acquiring authority
Experience
Advised on acquisition and compensation issues involving a leasehold interest at Milsons Point.

Valuer-General valuation appeals

Yes
Authority
Valuer-General
Client / party
Landowners
Experience
Acted in NSW Land and Environment Court valuation appeals challenging Valuer-General land valuations.

Sydney Gateway

Advisory
Authority
Transport for NSW
Client / party
Acquiring authority
Experience
Advised on drainage easement, acquisition process and compensation strategy issues.

Mamre Road partial acquisition

Advisory
Authority
Roads / infrastructure context
Client / party
Landowner-side assessment
Experience
Reviewed partial acquisition impacts, including land-take, development yield and compensation issues.

Berry to Bomaderry / Princes Highway upgrade

Advisory
Authority
Transport for NSW
Client / party
Affected landholder / authority context
Experience
Advised on drainage easement and acquisition-compensation issues affecting land near the Princes Highway upgrade.

Roads Act powers of entry for preliminary site investigations

Advisory
Authority
Transport for NSW
Client / party
Acquiring authority
Experience
Advised on Roads Act entry powers for preliminary site investigations, including voluntary access, statutory notices, authorised officers, residential-premises safeguards, compensation for loss or damage, and the distinction between temporary investigative entry and compulsory acquisition.

Selected experience is provided as a general indication of relevant matter exposure. Past matters do not imply that the same outcome will be available in any future matter. Each acquisition, valuation and compensation claim depends on its own statutory context, facts, evidence and deadlines.

Legal costs

Legal and valuation costs may form part of a compensation claim

Section 59(1)(a) and (b) identifies legal costs and qualified valuation fees reasonably incurred in connection with a compulsory acquisition as loss attributable to disturbance. Whether a cost is recoverable, and in what amount, depends on the statutory test and the facts. Reimbursement in full is not assured. You remain responsible for invoices under the applicable costs agreement; eligible costs may be included in the compensation claim.

  1. 01

    Scope and estimate the work

    The engagement and estimate should identify the work proposed for each stage.

  2. 02

    Record and invoice the work

    You remain responsible for invoices under the costs agreement.

  3. 03

    Include eligible costs in the claim

    Legal costs and qualified valuation fees may be itemised with supporting material.

  4. 04

    The amount is agreed or determined

    The authority may agree, or the Court may determine, the amount recoverable under the statutory test.

  5. 05

    Costs of Court proceedings are a separate question

    If the amount is not agreed and an objection goes to the Land and Environment Court, the costs of those proceedings are not part of the compensation claim under section 59. They are decided by the Court in its costs discretion. There is no automatic rule that costs follow the event in a Class 3 compensation claim, but a claimant who has acted reasonably and not caused unnecessary delay or expense will usually be entitled to recover the costs of the proceedings (Dillon v Gosford City Council [2011] NSWCA 328).

Read the guide: Legal and valuation costs in compulsory acquisition

General information only, not legal advice. Recovery depends on costs being reasonably incurred in connection with the acquisition and on the circumstances of your matter.

Compulsory acquisition & compensation

Received a notice about your land?

If you have received a proposed acquisition notice, compensation notice, valuation, easement request, access request or project correspondence, Stone & Pillar Legal can help you understand the process, preserve your position and prepare a compensation strategy.

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