Compensation Events

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Compensation events

Planning and Environment Act 1987 ("the P&E Act")

The adoption of a Public Acquisition Overlay ("PAO") into the planning scheme reserves part of your Property for a public purpose.

You may seek compensation from the Authority:-

1.       For financial loss suffered as the natural, direct and reasonable consequence of a refusal by the
          Authority to grant a permit to use or develop your Property on the ground that your Property is or
          will be needed for a public purpose.

We recommend this avenue if you wish to retain your Property.

When part of your Property is compulsorily acquired at a later date, compensation paid prior to that date
is taken into account.

Your entitlement to claim compensation arises if you apply for a planning permit for the development
and/or use of your Property and

1.1 this permit is refused on the basis that your Property is required for a public purpose; or

1.2 the Victorian Civil and Administrative Tribunal ("VCAT") directs that a permit must not be granted
on the ground that your Property is or may be required for a public purpose; or

          1.3       the Authority fails to grant a permit within the prescribed period or grants a permit subject to any
                      condition not acceptable to you, and VCAT disallows any application for review on the ground that
                      your Property is or may be required for a public purpose.

          If you pursue this avenue, you will be required to apply for a planning permit, within the constraints of the
          permitted uses of the current zoning of the Property. To this end, we recommend retaining a town
          planner to advise on various options for pursuing this planning permit and to prepare the Application on
          your behalf.

If you are considering pursing an application for a planning permit with a view to triggering a claim for
compensation, we recommend that you consult us immediately before commencing this course.

2. For loss on sale of your Property.

We recommend this avenue if you wish to sell your Property.

2.1 You must first give the Authority at least 60 days notice of your intention to sell before selling.
The Authority may abridge time and reduce the notice period.

2.2 Once the 60 days has elapsed or the Authority has abridged time and reduced the notice period,
you may enter into a contract of sale.

2.3 If you sell the Property at less than its value unaffected by the PAO, your loss can be claimed
from the Authority, but the process is technical and a trap for the unwary.

If you are considering pursing this avenue, we recommend that you consult us immediately
before commencing this course.

You are not eligible to claim compensation if you were not the owner or occupier of your property at the time the right to claim compensation arose as outlined above. Therefore, if you became the owner or occupier of your property after:-

amendments were made to the planning scheme reserving your property for the Projects or other public purpose; or

a public acquisition overlay ("PAO") is adopted into the planning scheme reserving any part of your property for the Projects or other public purpose;

and you have a planning permit application refused you do not have a right to claim compensation, unless the refusal is due to an amendment to the planning scheme subsequent to you becoming the owner or occupier of your property.

Land Acquisition and Compensation Act 1986 ("the LAC Act")

The adoption of a Public Acquisition Overlay ("PAO") into the planning scheme:-

(a) reserves part of land for a public purpose, being the Project ("the Affected Land").

(b) does not oblige the Authority to acquire the Affected Land. The PAO simply ensures that any future development and use of the Affected Land is always the subject of review by the Authority, which may have consequential adverse impact on its value.

When the Authority acquires the Affected Land, the owner will be entitled to make a claim for compensation under the LAC Act. The Authority will be required to follow the procedure set out in the LAC Act which, whilst not a perfect system, has in-built safeguards to protect your interests and ensure that fair compensation is paid.

If the Authority acquires the Affected Land, we recommend that you consult us immediately before commencing this course.

Compensation Events