Land owners are eligible to be compensated for a range of matters.
After carefully considering the potential impact land acquisition can have on families and individuals, the Government has increased the maximum amount of compensation payable for non-financial impacts to $75,000 (up from $27,235). This type of compensation used to be called solatium.
The increase recognises the disruption and inconvenience of relocation including finding new schools, medical services and building new social networks.
The increased payment will apply retrospectively to former land owners whose acquisitions were settled on or after 26 February 2014.
How do I apply for retrospective compensation?
Land owners and tenants of properties acquired and settled on or after 26 February 2014 can find out more about applying for backdated compensation by visiting osr.nsw.gov.au/solatium or calling 1300 303 581.
How does the compensation process work?
The compensation process can be broken down into three categories:
- Acquisition by agreement
- Compulsory acquisition
- When compensation amount is not accepted
The individual steps involved in each category are outlined below. The timeframes associated with each depend on how long it takes for agreement to be reached between the land owner and the acquiring authority.
What can I be compensated for?
Land owners will receive market value for their home and land. The value does not include any impacts of the project.
Land owners can be compensated if the land has a special financial value to the land owner.
Land owners can be compensated if their land has been split into two or more parts as a result of the project.
Valuation, legal and relocation costs, stamp duty and mortgage fees
Acquiring authorities will pay for fees and costs incurred by the land owner during the process. It is important to obtain quotes for valuations and legal fees and discuss them with the acquiring authority before going ahead as only reasonably incurred fees will be paid.
Disadvantage resulting from relocation
Land owners are entitled to compensation in recognition of the disruption and personal loss relating to the process of land acquisition. This type of compensation used to be known as solatium. The maximum amount payable is now $75,000, which will be indexed annually by CPI.