Compulsory Acquisition occurs when a government institution or department acquires privately owned property or land for the purposes of developing public works, such as, new infrastructure and the expansion of existing networks.

“Compulsory Acquisition” is a legal term and is legislated in the Australian Constitution.

You can either own a property outright or you can have a mortgage over it and with strong evidence, it is possible to fight compulsory acquisition in federal court, but more often than not, the government comes out on top.

Property can be acquired by

• The Federal Government
• State or Territory Departments
• Local Government Authority
• The Department of Defence
• Local or State Water supplier
• A state transport network provider
• A state Roads Authority

Within 14 days of receiving an official Notice of Acquisition, the government is required to make an offer in writing to each party that has interest in the land.

The offer will include a copy of the certificate of valuation that the acquiring authority has based their offer on.

Valuations are undertaken by your state’s relevant Valuer General and is based on” highest and best use”, which refers to the “fair market value” that you are entitled to.

Besides the property valuation, you may claim any losses incurred by the compulsory acquisition including:

• Stamp duty, mortgage refinance fees, removalists and other costs associated with buying a replacement property.
• Legal, valuation & accounting expenses
• Compensation for “intangibles losses” ie emotional connection, inconvenience to your working life, schooling for children etc.

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