Can I Claim for Reinstatement After the Compulsory Purchase of My Business?

Compensation in compulsory purchase situations is usually calculated by reference to what the dispossessed landowner has lost. Of primary importance is the market value of the land being acquired, as well as the costs incurred for advice and relocation costs incurred. Reforms introduced in 2017, however, mean that dispossessed landowners can now seek compensation on the basis of ‘reinstatement’ elsewhere. This means that compensation can be claimed based on what the dispossessed owner is required to acquire in order to reinstate the business in another location rather than the value of what has been lost as a result of the compulsory purchase.

The reinstatement provision in practice

This reinstatement provision was judicially considered for the first time recently. In The Trustee for Whitcurt Unit Trust v Transport for NSW (2021), the applicant had a golf range business in Tempe on land owned by the Inner West Council which was acquired by Transport for NSW in 2020. 

The NSW Land and Environment Court, other than for agreed legal and valuation costs, decided they were not entitled to compensation because the applicant only had a short-term leasehold interest and did not own the essential infrastructure involved. However, the case offers some insights as to how the Court may approach future claims for reinstatement.

Contact our Land and Environment Court Solicitors Sydney, NSW

Szabo & Associates Solicitors are experienced practitioners in respect of all matters concerning this specialist Court. If you require the help of our experienced professionals for a Land and Environment Court case or indeed any property related matter please call us on 02 9281 5088 or fill in our online contact form.