In Victoria, s41 of the Land Acquisition and Compensation Act 1986 sets out the general principles on which compensation is to be based:
It states that regard must be had to the following factors:
- the market value of the interest on the date of acquisition;
- any special value to the claimant on the date of acquisition;
- any loss attributable to severance;
- any loss attributable to disturbance;
- the enhancement or depreciation in value of the interest of the claimant, at the date of acquisition, in other land adjoining or severed from the acquired land by reason of the implementation of the purpose for which the land was acquired;
- any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition of the interest (excludes costs incurred under Part 10).
- Solatium
(2) If the market value of an interest in land is assessed on the basis that the land had potential to be used for a purpose other than the purpose for which it was used on the date of acquisition, compensation must not be allowed for—
(a) any special value in respect of any pecuniary advantage that would necessarily have been forgone in realizing that potential; and
(b) any loss attributable to disturbance that would necessarily have been incurred in realizing that potential.
(3) If less than the whole of the land in which a claimant’s interest subsists is acquired or less than the whole of that interest is acquired, the market value of the acquired interest is the difference between the market value of the interest before the acquisition and the market value of the interest after the acquisition.
The Act also sets out the compensation payable if:
- compensation has been previously paid under the Planning and Environment Act 1987.
- If the claimant’s interest in the acquired land was liable to expire or to be determined
- Reinstatement in particular circumstances
In assessing compensation, the following matters must be disregarded (s43)—
(a) any increase or decrease in the market value of the interest in land which is acquired arising from the carrying out, or the proposal to carry out, the purpose for which the interest was acquired;
(b) any special suitability or adaptability of the land in which the acquired interest subsists for a purpose for which it could only be used in pursuance of a power conferred by or under law, or for which it could only be used by the government or a public or local authority;
(c) any increase in value of the land in which the acquired interest subsists which results from the use of that land in a manner or for a purpose contrary to law;
(d) in a case where the land in which the acquired interest subsists is reserved for a public purpose in a planning instrument, any restrictions upon the use or development of that land which are imposed by, or are a consequence of, the reservation;
(e) any increase in the value of the interest in land acquired which is caused by the carrying out, after service upon the claimant or any other person of the notice of intention to acquire, of any improvements of a durable nature made to the land without the consent of the Authority, unless the claimant proves that these were carried out in good faith in the belief that they had been approved by the Authority;
(f) any sales, transactions, arrangements, licences or approvals in writing effected or obtained with respect to the land in which the acquired interest subsists after service upon the claimant of the notice of intention to acquire, unless these were effected or obtained with the consent of the Authority or the claimant proves that they were effected or obtained in good faith in the belief that they had been approved by the Authority.
An expert valuer at Rushmore can assist you formulate a valuation for the purposes of the Victorian Land Acquisition and Compensation Act.