Valuation and compensation objections
Three different disputes are often spoken of as one. Objecting to the amount of compensation after a compulsory acquisition, objecting to a land valuation used for land tax and rates, and challenging an acquisition itself are separate matters, with different forums, tests and time limits. Knowing which one you are in, early, is what protects your position.
- Jurisdiction
- New South Wales
- Forum
- Land and Environment Court, Class 3
- Page type
- Explainer
First, identify the dispute you are actually in
Each of the following has its own forum and its own clock, and a step taken in one does not preserve your rights in another. The distinction matters most at the start, when the deadlines are running.
Whether the land should have been acquired, or the process was lawful
If the question is the validity of the acquisition, that is a challenge to the decision, generally pursued by judicial review in the Supreme Court on limited legal grounds. It is a separate matter from compensation, and is not decided through the compensation process.
Supreme Court (judicial review)
The acquisition stands, but the compensation offered is too low
Compensation for a compulsory acquisition is assessed under the Land Acquisition (Just Terms Compensation) Act 1991. An owner dissatisfied with the amount determined may generally object to the Land and Environment Court in its Class 3 jurisdiction, commonly within 90 days of the compensation notice (s 66).
Land and Environment Court, Class 3
The Valuer-General's land value used for land tax or council rates
Where the concern is the land value itself (not a compulsory acquisition), that is a valuation objection under the Valuation of Land Act 1916: object to the Valuer-General first, and if still dissatisfied, appeal to the Land and Environment Court in Class 3, generally within 60 days of the determination.
Land and Environment Court, Class 3
These time limits are indicative only and can turn on the facts and on the terms of the notice you have received. The safe course is to confirm the deadline that applies to your matter as soon as a notice arrives, rather than rely on a general period.
Objecting to the amount of compensation
Compensation for land acquired by a NSW authority is assessed on just terms under the Land Acquisition (Just Terms Compensation) Act 1991. The process runs to a sequence of notices and deadlines, and the point at which you can object to the Land and Environment Court is a specific one, tied to the compensation notice, not to the earlier notice of the proposed acquisition.
- Early engagement
An acquiring authority is generally required to try to acquire the land by agreement for a minimum period before it moves to compulsion (s 10A). An offer at this stage is a starting point, and is assessed on the same statutory basis as a compulsory acquisition.
- Proposed acquisition notice
A proposed acquisition notice (s 11) signals the intention to acquire and generally must run for at least 90 days before the land can be acquired (s 13). The notice will also ask you to lodge a claim for compensation within a stated period, which must be at least 60 days after the notice is given (ss 15(e) and 39). That claim is your first statement of what you say the compensation should be, so it is worth getting right, and only a person who has claimed compensation can later object to the amount offered (s 66(1)). Responding to the notice does not, however, start the period for objecting to the amount of compensation; that period runs from the later compensation notice (s 66).
- Acquisition
The acquisition takes legal effect when it is published in the Government Gazette. Compensation is then determined by the Valuer-General, and the authority generally must give the former owner a compensation notice (an offer) within 45 days of the acquisition notice (s 42).
- Objection to the LEC
A former owner who disputes the amount may generally object to the Land and Environment Court in its Class 3 jurisdiction, commonly within 90 days of receiving the compensation notice (s 66). The Court can allow a late objection only in limited circumstances, so the period is best treated as strict.
The heads of compensation
Compensation under section 55 is more than the market value of the land. It can include:
- special value
- loss attributable to severance and to injurious affection of land you retain
- loss attributable to disturbance (which can extend to professional fees and the costs of relocating a home or business)
- for a principal place of residence, disadvantage resulting from relocation (formerly called solatium)
Market value is assessed disregarding any change in value caused by the public purpose of the acquisition (s 56(1)(a)).
Related: land acquisition & compensation · proposed acquisition notices · how we act on acquisitions
Objecting to a land valuation
A separate objection concerns the land value determined by the Valuer-General. That value underpins land tax (Land Tax Management Act 1956) and council rates (Local Government Act 1993), so an inflated value has a recurring cost. This is not a compulsory acquisition matter, and it follows the Valuation of Land Act 1916.
- Object to the Valuer-General first. An objection to the land value is generally made to the Valuer-General, commonly within 60 days of the valuation notice, setting out the grounds relied on.
- Then appeal to the Land and Environment Court. If you remain dissatisfied with the Valuer-General's determination of the objection, you may generally appeal to the Court in its Class 3 jurisdiction (s 37), commonly within 60 days of that determination, with a late appeal allowed only in limited circumstances.
- Evidence decides it. As with compensation, the result turns on valuation evidence, comparable sales and the assumptions applied, so the grounds and the material behind them matter from the outset.
Identify the dispute, protect the deadline, then build the case
We advise landowners and businesses affected by compulsory acquisition on the acquisition process, compensation and related disputes, and property owners on valuation objections. On a compensation or valuation matter that usually means:
- confirming which objection pathway applies and the date by which any objection must be made
- assessing an offer or valuation against the proper statutory basis
- briefing and leading valuation and other expert evidence
- where a matter does not resolve, conducting the Class 3 proceedings
Much of the early work is offered as defined, fixed-scope steps, so you can take a first, contained step without committing to an open retainer.
This page is general information about New South Wales law only. It is not legal advice, does not take account of your circumstances, and time limits and entitlements depend on the facts and on the terms of any notice you have received. Reading it, or making an enquiry, does not create a solicitor–client relationship. For advice on your matter, obtain advice that is specific to it, and do so promptly where a deadline may be running.
A sensible first step
Preliminary screening of the notice
Identify the document received, the date of receipt and the decision or amount disputed. A preliminary call does not confirm a legal deadline or constitute advice.
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