The NSW Government has committed to implementing the Strategic Benefit Payment (SBP) scheme, which will see eligible landholders receive payments for hosting transmission infrastructure.
The scheme represents a significant step towards facilitating the renewable energy transition.
Commencing on 1 July 2025, the SBP Guidelines will inform how and to whom payments will be made.
Distributing the economic benefits of the energy transition to host landholders
The SBP scheme was implemented to facilitate the urgent and large-scale delivery of transmission infrastructure, critical to supporting the renewable energy transition. The scheme seeks to ensure that landholders who host transmission infrastructure receive the economic benefits from the energy transition.
Under the scheme, certain electricity distributors and transmission operators will be required to make payments as a condition of their licences under the Electricity Supply Act 1995 (NSW) (ES Act).
Eligible landholders will receive the equivalent of $200,000 in 2022 dollars, per kilometre of eligible transmission infrastructure hosted on their property. Payments are paid over 20 years in annual instalments, adjusted for inflation.
Notably, payments under the SBP scheme are to be disregarded for the purpose of determining compensation for compulsory acquisitions under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (see s 44(4) Electricity Supply Act 1995 (NSW)).
There are currently seven 'eligible projects' under the Guidelines
To be eligible to receive a payment under the SBP scheme, a landholder must host 'eligible infrastructure' from one of the following projects:
- Project Energy Connect (PEC);
- HumeLink;
- Victoria – New South Wales Interconnector West (VNI West);
- Main Central West Orana Renewable Energy Zone network infrastructure project;
- Enabling Central West Orana Network Infrastructure Project;
- New England REZ Network Infrastructure Project; or
- Sydney Ring North (Hunter Transmission Project).
New projects may be included by the Minister administering the ES Act.
A number of interest-holders will be eligible for scheme payments
In order to be eligible for a payment, a person must hold an 'eligible interest' and must not be a public authority.
The SBP Guidelines currently identify the following as eligible interests:
- An owner of old system title.
- A registered proprietor of Torrens title land.
- An owners corporation of strata scheme land.
- A Community, Neighbour or Precinct Associate for community title scheme land.
- A lessee of a Western lands lease.
- A lessee of any other perpetual lease lands under the Crown Land Management Act 2016 (NSW).
- A registered Native Title Body Corporate holding Native Title rights recorded on the National Native Title Register.
- A registered proprietor or lessee of land under the Aboriginal Land Rights Act 1983 (NSW).
The SBP Guidelines also provide guidance on how payments are to be calculated
Relevant licence holders under the ES Act are responsible for calculating the length of transmission lines for the purpose of determining the quantum of any SBP scheme payments.
Different calculation methods are suggested depending on the nature of the infrastructure and landholding. Below are examples from the Guidelines illustrating how various line lengths would be calculated.
Further information
The SPB Guidelines have been published in the NSW Government Gazette No 241 of 20 June 2025 and commence on 1 July 2025.
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.
