Compulsory acquisition is the process by which a government authority acquires private land or property rights for public infrastructure and community projects. While owners, tenants and businesses may be required to give up their interests, they are often entitled to compensation for the value of the property and losses arising from the acquisition.
Unfortunately, Compulsory Acquisitions by statutory authorities and governments are a fact of life. Land and interests are acquired for new roads, public facilities, the supply of services and other infrastructure projects.
Our compulsory acquisition lawyers only act for land owners, businesses and tenants affected by the compulsory acquisition process. We do not act for Government Departments, Councils or any other Acquiring Authorities on any project.
If your interest has been compulsorily acquired, we will work with you to ensure you are fairly compensated. It is important to us that our clients feel respected and heard through this process.
We will help recover not just the true value of your property but also the loss of its potential and any special value the land may hold for you. We will also get compensation for your relocation, other associated expenses and, what the legislation calls ‘solatium’ – which is for any intangible and non-pecuniary disadvantages you may suffer because of the compulsory acquisition.
In the case of affected businesses, in addition to any relocation or fit out expenses incurred, compensation will be assessed on the impact (or potential impact) to the business as a result of the acquisition, considering (amongst other things) the location, the age of the business, the length of leases and possible and consequential losses. If a business chooses to relocate, we believe it is important to work with the relevant authorities (and the Project) to ensure continuity of business during the acquisition process to facilitate a smooth transition and relocation process.
We understand the human side of compulsory acquisition, and we work hand in hand with valuers and other experts to support our client’s claim for compensation. Our professional compulsory acquisition lawyers have a broad and in-depth understanding of the Land Acquisition and Compensation Act 1986 (Vic) and the factors that may be taken into account when assessing compensation.
At Aitken Partners, we can assist clients in obtaining advances of compensation from acquiring authorities at an early stage of a claim to help cover the costs of conduct of claims.
We have acted for owners, tenants and businesses affected by most major projects in Victoria over the past few decades and for many owners affected by minor road widening schemes and public acquisition overlays.
A snapshot of some recent compulsory acquisition projects on which our team is advising or has advised clients include:
We have published insight articles for many years covering Compulsory Acquisition projects and the topics that clients ask us about. Examples include:
What is a Public Acquisition Overlay?
Am I entitled to compensation if a tunnel runs under my property?
What do you do if your land is Compulsorily Acquired?
Public Acquisition Overlays and Compulsory Acquisitions - When do you get legal advice?
Can loss of earnings be covered during a Compulsory Acquisition?
Aitken Partners Compulsory Acquisition Update
Compulsory Acquisition General Advice
We keep track of the updates from a variety of authorities about the status of ongoing projects to ensure we have the most up-to-date information to support our clients. You can find more information on the following websites:
Victorian Government Gazette
Vic Big Build
Partnerships Victoria projects
Development Vic - Projects
Victoria’s major projects delivery
Vic Planning Authority
Homes Vic
State projects register
Our Compulsory Acquisition team is passionate about the rights of property owners, businesses and tenants throughout the compulsory acquisition process. With decades of experience acting for clients across Victoria, we understand both the legal and personal challenges that can arise when land or property interests are acquired.
We work closely with our clients to ensure they are informed, supported and fairly compensated, combining strategic legal advice with practical guidance at every stage of the acquisition and compensation process.
To get in touch with our compulsory acquisition lawyers in Melbourne, fill out the form below or give us a call: +61 3 8600 6000
Located in Melbourne CBD at Level 28, 140 William Street, Melbourne. Servicing all Melbourne suburbs online and within a 15-minute drive for: Melbourne CBD, Carlton, Fitzroy, Richmond, South Yarra, St Kilda, Brunswick, Collingwood, Prahran, South Melbourne, North Melbourne.
Compulsory acquisition, also known as eminent domain or expropriation, is the power of the government to take private property for public use, with just compensation paid to the owner.
Compulsory acquisition is typically used for projects that benefit the public, such as:
- Infrastructure development (roads, railways)
- Public utilities (water, electricity)
- National defense
- Urban renewal
- Environmental protection
Compensation is typically based on the fair market value of the property, which is the price a willing buyer would pay to a willing seller in an open market transaction. Factors considered in determining fair market value may include:
- Location
- Size and condition of the property
- Zoning and land use restrictions
- Recent comparable sales
An easement is the right to use another person's land for a specific purpose (e.g., right of way, access to utilities). Compulsory acquisition of an easement allows the government to acquire the right to use a portion of private land for a public purpose, without acquiring ownership of the land itself.
In Australia, compensation received for compulsory acquisition of land may be subject to capital gains tax unless the land was your main residence and you qualify for the main residence exemption.
Yes, a lease can be terminated upon compulsory acquisition of the property. However, the lessee may be entitled to compensation for the loss of their leasehold interest.
Yes, a mortgagee (lender who holds a mortgage on the property) may be entitled to compensation for the loss of their security interest in the property.
Please note: The information on this page is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained on this page.