The Planning Act 2016 allows a person with an interest in a property (known as an 'affected owner') to claim compensation from a local council when the value of the person’s interest is reduced as a result of a change to a local planning instrument (i.e. a change to a planning scheme). The Planning Act refers to these changes as ‘adverse planning changes’.
In order to claim compensation, a person must have an interest in the property at the time the change to the local planning instrument took effect.
In most cases, a claim can be made when the change:
What is the process?
For a public purpose change, an affected owner can simply make a claim for compensation with the local council within two years of the change taking effect.
For other changes, the process that needs to be followed is a bit more complex and involved. The steps that need to be taken are as follows:
Once an affected owner receives notice of the local council’s decision, they have six months to lodge the claim with the local council.
How much can I claim?
The amount of compensation payable is the difference between the market value of the interest in the property immediately before the change and the market value immediately after the change.
The amount of compensation will be adjusted having regard to such factors as:
The claimable amount is also confined to the change to the market value of the property (and any applicable interest). Unlike the Acquisition of Land Act 1967, the Planning Act does not allow for compensation to be paid for damages or disturbance (consultant’s fees, legal fees, etc).
Can I appeal?
A local council can approve, approve in part, or refuse a claim for compensation. If an affected owner does not accept the local council’s decision on the claim for compensation, the Planning Act allows the affected owner to appeal the decision in the Planning and Environment Court. An appeal must commence within 20 business days of being provided with the local council’s decision.
If you have any questions or would like to discuss any of these matters further, please contact a member of our Queensland Planning, Environment & Sustainability team.
Author: Mitchell Osborne
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The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.
Published by Mitchell Osborne