One of the most significant questions landholders ask when major infrastructure is proposed is whether the government can compulsorily acquire private land.

The short answer is yes, but only in certain circumstances and through legal processes established under Victorian law. Compulsory acquisition is generally regarded as a measure of last resort and is subject to specific legislative requirements.

What Is Compulsory Acquisition?

Compulsory acquisition is the legal process that allows certain government bodies and authorised authorities to acquire private land for a recognised public purpose without the owner's agreement.

Examples may include roads, railways, electricity infrastructure, water projects and other public works authorised by legislation.

Does It Happen Often?

Most major infrastructure projects begin with voluntary negotiations between the project authority and affected landholders.

In many cases, agreements are reached without the need for compulsory acquisition. Where agreement cannot be reached, legislation may provide a pathway for compulsory acquisition if the project has the necessary approvals and legal authority.

What Rights Do Landholders Have?

Landholders continue to have important legal rights throughout the acquisition process.

Depending on the circumstances, these may include:

  • Receiving formal notice of proposed acquisition.
  • Obtaining independent legal advice.
  • Seeking independent valuation advice.
  • Negotiating compensation.
  • Understanding how the acquisition affects the remaining property.
  • Accessing review or appeal processes where available.

The exact rights depend on the legislation governing the project.

How Is Compensation Determined?

Compensation is assessed under the relevant legislation and generally aims to compensate landholders for the value of the interest being acquired together with other compensable losses recognised by law.

Factors considered may include:

  • Market value.
  • Disturbance costs.
  • Professional fees in some circumstances.
  • Impacts on the remaining property.
  • Other matters recognised by legislation.

Can an Easement Be Acquired Instead?

Yes.

For some infrastructure projects, only an easement or other property interest may be required rather than full ownership of the land.

This allows the landholder to retain ownership while granting legal rights for specific infrastructure.

Questions Landholders Should Ask

  • What legislation applies?
  • Is acquisition necessary or are other options available?
  • Will the entire property or only part of it be affected?
  • How has compensation been assessed?
  • What professional advice should I obtain?
  • What review rights are available?

Our Position

Fair Go for North East Country believes compulsory acquisition should only occur where authorised by law, genuinely necessary and supported by transparent decision-making.

Landholders deserve early consultation, clear information, fair treatment and appropriate compensation where private property rights are affected.

Looking Ahead

Major infrastructure will continue to play an important role in Victoria's future. Ensuring communities understand the legal framework surrounding compulsory acquisition helps landholders participate confidently and make informed decisions when proposals affect their property.

Fair Go for North East Country supports practical planning that respects private property rights, encourages meaningful consultation and provides clear, factual information about the legal processes that may affect regional communities.