Section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 states that “Solatium” is to be considered in determining the amount of compensation due to a person.
What is solatium?
Section 60(1) defines Solatium as compensation to a person for non-financial disadvantage resulting from the necessity of the person to relocate his or her principal place of residence as a result of the acquisition.
What is the maximum amount that can be paid in respect of solatium?
Section 60(2) of the Act states that:
the maximum amount of compensation in respect of solatium is:
(a) except as provided by paragraph (b) $15,000, or
(b) such higher amount as may be notified by the Minister by notice published in the Gazette.
(3) In assessing the amount of compensation in respect of solatium, all relevant circumstances are to be taken into account, including:
(a) the interest in the land of the person entitled to compensation, and
(b) the length of time the person has resided on the land (and in particular whether the person is residing on the land temporarily or indefinitely), and
(c) the inconvenience likely to be suffered by the person because of his or her removal from the land, and
(d) the period after the acquisition of the land during which the person has been (or will be) allowed to remain in possession of the land.
(4) Compensation is payable in respect of solatium if the whole of the land is acquired or if any part of the land on which the residence is situated is acquired.
(5) Only one payment of compensation in respect of solatium is payable for land in separate occupation.
(6) However, if more than one family resides on the same land, a separate payment may be made in respect of each family if:
(a) the family resides in a separate dwelling-house, or
(b) the Minister responsible for the authority of the State approves of the payment.
(7) If separate payments of compensation are made, the maximum amount under subsection (2) applies to each payment, and not to the total payments.