Compulsory Acquisition Victoria: Your Rights as a Landowner Explained
Date: 13 May 2026
Author: Anna Shaw - Genuine People
Your Land, Your Rights
If you own land in Victoria, or have certain interests in land, the government or an authorised public authority may have the power to compulsorily acquire it – whether for a road, a railway, a transmission line, a pipeline, or any other public purpose.
It is a confronting reality for any property owner: the law permits your land to be taken without your consent. But the law also protects you. The process is governed by a strict legislative framework designed to ensure those rights are respected.
Victorian landowners and interest holders whose land is compulsorily acquired have significant rights to compensation and, importantly, the right to legal and expert advice to follow the process and ensure full compensation is claimed.
What Is Compulsory Acquisition?
Compulsory acquisition, also referred to as “resumption” or the American term “eminent domain”, is the legal process by which a government or an authorised body acquires an interest in private land for a public purpose, without requiring the landowner’s agreement.
In Victoria, this process is primarily governed by the Land Acquisition and Compensation Act 1986 (Vic) (“the LAC Act”), supported by the Land Acquisition and Compensation Regulations 2021. Special acts apply depending on the acquiring authority involved and the nature of the project. The Planning and Environment Act 1987 (Vic) also plays an important role in the process prior to the formal acquisition, primarily in relation to the reservation of land for public purposes in planning schemes.
Who Can Acquire Land?
A range of public authorities are empowered to acquire land compulsorily under various “special acts”. These include state government departments, the Department of Transport and Planning and associated entities, water authorities, electricity transmission companies, rail authorities, local councils, and other bodies exercising statutory powers for public purposes.
However, an authority that is empowered to acquire land by compulsory process must not do so except in accordance with the LAC Act.
Before commencing the acquisition, the land must generally be reserved for a public purpose under a planning instrument, or certain exemptions must apply depending on the specific nature of the project. The Planning and Environment Act 1987 (Vic) provides the mechanism through which land is reserved for public purposes through planning schemes, and also provides for compensation where land is so reserved.
The Acquisition Process Step by Step
The formal compulsory acquisition process under the LAC Act follows a structured sequence of steps designed to protect landowner rights:
Step 1: Notice of Intention to Acquire
The acquiring authority must serve a notice of intention to acquire on each person who has an interest in the land. This notice must identify the interest to be acquired, describe the land, state the purpose of the acquisition, explain why the land is suitable for that purpose, and indicate the approximate date the acquiring authority wishes to take possession. The notice must be accompanied by a statement setting out the landowner’s principal rights and obligations. The service of this notice does not constitute an offer or binding agreement to acquire the land.
Step 2: Restrictions on Dealings
Once the notice is served, the landowner must not, without the acquiring authority’s consent, sell the land, grant any interest in it, or make durable improvements to it.
Step 3: Opportunity to Negotiate
The acquiring authority may acquire the interest by agreement after service of a Notice of Intention to Acquire. Such an agreement needs to be carefully considered against the rights claimants have after the service of the Notice of Acquisition.
Step 4: Notice of Acquisition
If the acquiring authority proceeds with compulsory acquisition, it publishes a notice of acquisition in the Government Gazette, but generally not until at least two months after the notice of intention to acquire was served. Upon publication, the interest in land vests in the acquiring authority.
Step 5: Offer of Compensation
Within fourteen days of the date of acquisition, the acquiring authority must make a written offer of compensation to each claimant. The offer must be based on a formal valuation and the information available to the acquiring authority at that time.
Step 6: Claimant’s Response
The claimant has three months to either accept the offer or serve a notice of claim seeking a different amount. Claimants regularly require additional time to explore with their lawyers and experts all of their compensation rights.
Claims that cannot be resolved by agreement may ultimately become a “disputed claim” which can be referred for determination by the Victorian Civil and Administrative Tribunal (VCAT) or the Supreme Court of Victoria.
What Compensation Are You Entitled To?
The LAC Act provides for compensation to be assessed with regard to a number of heads of claim including:
- Market value — the amount a willing but not anxious seller would receive from a willing but not anxious purchaser at the date of acquisition.
- Special value — any additional pecuniary advantage incidental to the claimant’s ownership or occupation that is unique to them and not reflected in the general market.
- Loss attributable to severance — any reduction in market value of the claimant’s remaining land or other land used in conjunction with the acquired land, caused by the acquisition.
- Loss attributable to disturbance — pecuniary losses suffered as the natural, direct, and reasonable consequence of the acquisition, for example relocation costs, loss of business profits, or disruption to farming operations.
- Enhancement or depreciation — changes in the value of adjoining or severed land resulting from the project’s implementation.
- Professional expenses — legal, valuation, and other professional costs necessarily incurred by reason of the acquisition.
In addition, section 44 of the LAC Act provides for a payment called “solatium” — an amount of up to 10% of the market value of the land to compensate for intangible and non-pecuniary disadvantages resulting from the acquisition. Solatium is assessed in regard to a number of factors including the claimant’s length of occupation, their age, the duration they intended to stay and the inconvenience of removal.
It is critical for expert lawyers to understand the claimant’s position, needs and rights under the LAC Act to ensure all processes are followed, timing is as manageable as possible and that full compensation is sought.
Why Independent Legal Representation Matters
Compulsory acquisition is not a negotiation between equals. The acquiring authority has extensive resources, experienced advisors, and statutory powers. Without independent legal and expert opinions, such as valuers, claimants risk accepting a compensation amount that falls well short of their true entitlement.
Expert compulsory acquisition lawyers can ensure that every head of compensation is properly identified, that valuations are contested where appropriate, and that your rights under the LAC Act are fully enforced, whether through negotiation or, if necessary, proceedings before VCAT or the Supreme Court.
Reasonable legal, valuation, and professional expenses incurred as a result of the acquisition are claimable under the LAC Act, meaning expert advice often costs the landowner nothing out of pocket.
Anton Dunhill — Expert Compulsory Acquisition Advice
Anton Dunhill is one of Victoria’s foremost compulsory acquisition lawyers. He was recently interviewed on Drive with Prue Bentley on ABC Radio Victoria, discussing the VNI West transmission project and Victorian landowners’ rights – a reflection of his standing as a leading authority in this field.
Whether your property is affected by a transmission line, a road project, a rail corridor, or any other public infrastructure, Anton has the expertise to guide you through the process and fight for the compensation you deserve.
Contact Anton Dunhill at Hunt & Hunt Lawyers today to discuss your matter.
If you have received a notice of intention to acquire, an offer of compensation, or any communication from a government authority about your land, do not delay. Seek independent legal advice immediately. Early engagement gives you the best chance of protecting your rights and achieving a fair outcome.
