Significant changes to the Acquisition of Land Act 1967
commenced in February 2009. Some important changes include the
A claim for compensation may now only be served on the resuming
authority within three years after the day the land was taken. The
legislation did not previously stipulate a time limit within which
to claim compensation.
However, new section 19(4) permits the resuming authority to
accept, and deal with, a claim for compensation served by a
claimant more than three years after the day the land was taken if
it "is satisfied it is reasonable in all the circumstances to
do so". If the resuming authority does not accept a claim
served more than three years after the day the land was taken, the
claimant may apply to the Land Court to decide whether it is
reasonable to accept the claim.
New section 18(3A) provides that if a person's investment
property is resumed, compensation for costs attributable to
disturbance are payable to the person for the purchase of land by
the person to replace the investment property. In other words, if a
landowner's investment property is resumed, that landowner will
now be entitled to claim legal costs, stamp duty, search fees and
other expenses incurred in acquiring a replacement investment
Until that change, the Queensland Land Court and the Land Appeal
Court had followed English court decisions that held that a person
whose principal place of residence is resumed is entitled to be
reimbursed the stamp duty and legal costs of acquiring a
replacement residence, but a person whose investment property is
resumed is not entitled to reimbursement of stamp duty, search
fees, legal costs and other expenses incurred in acquiring a
replacement investment property.
The rationale was that the owner of the investment property could
have invested in other investments that did not involve those
costs, such as shares, and it would be unreasonable to require the
resuming authority to pay the costs due to that choice of
investment. Many owners of resumed investment properties were
aggrieved by those decisions, and disappointed to discover that
they were not entitled to reimbursement of the considerable costs
of replacing their investment property. This change is very
New sections 12(12) and (13) say the making of a claim for
compensation for common property under the Body Corporate and
Community Management Act 1997 does not stop the owner of a lot
making a claim for compensation for damage suffered by that lot
owner as a result of the taking of the common property and the
affect of the taking on the owner's lot.
New section 14(2A) states that, in assessing compensation
payable to an owner of resumed land, a contract, licence, agreement
or other arrangement entered into in relation to the land after the
notice of intention to resume was served on the owner must not be
taken into consideration if it was entered into for the sole or
dominant purpose of enabling the claimant or another person to
obtain compensation for an interest in the land created under
Many of the changes to the legislation are welcome, particularly
the right to claim the costs and duty incurred in replacing an
investment property, but all landowners should be aware of the new
three-year limitation period and ensure that their claim for
compensation is lodged within that timeframe to avoid a potentially
expensive and uncertain application to the Land Court for an
extension of time.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).