What is compensation and when does it apply?
Landowners and other interested parties are entitled to claim compensation when their land is compulsorily acquired by the Coordinator-General.
Compensation is the amount of money paid to landowners and other interested parties as a result of their land being resumed.
What does compensation cover?
Compensation covers:
- value of the land resumed
- damage caused by the severance of a part/s of a property
- damage to other land caused by use of statutory powers
- 'disturbance costs' – as defined in section 20 of the Acquisition of Land Act 1967.
Assessing the compensation amount
Assessment is based on the market value of your property, or your interest in a property. The Coordinator-General arranges for an independent valuation of your property by a registered land valuer. After a property has been resumed, the Coordinator-General-appointed valuer contacts the landowner to arrange an inspection of their property.
When assessing the compensation amount, contracts, agreements, licences or other arrangements entered into after the Notice of Intention to Resume is served are not taken into account.
The owner of a property is not entitled to compensation if they buy it after part of the property, or an easement on the property, has been compulsorily acquired. The exception to this rule is if compensation is part of the terms of the contract of sale.
Generally, the resumption of land is not considered a 'supply' for goods and services tax (GST) purposes.
For more information about the tax implications of compulsory land acquisitions, seek independent financial advice or contact the Australian Taxation Office.
Steps for a compensation process
- Lodge a compensation claim
- Validate and review claim
- Compensation offer
- Compensation negotiation
- Compensation payment
Lodge a compensation claim
Anyone with a legal interest in resumed land can lodge a claim for compensation after the resumption notice is published in the Queensland Government Gazette.
Compensation claims must be:
- in writing – download the compensation claim form (
378.5 KB) for land resumed by the Coordinator-General - lodged within 3 years of the resumption notice being published – the Coordinator-General may extend this deadline under certain circumstances.
Getting professional support
If you’re eligible to claim compensation, you may wish to engage a:
- registered land valuer to assess the value of your property
- solicitor to prepare and lodge the compensation claim on your behalf.
Reasonable legal, valuation and other professional fees you incur in preparing your claim will be reimbursed by the Coordinator-General as part of your overall compensation payout.
2. Validate and review claim
Our office reviews a claim and its supporting evidence, before making an offer of compensation. To validate the claim and assist with the review, we may ask for further information to help progress your claim.
3. Compensation offer
Our office makes an offer of compensation based on the information available, including the valuation obtained by the Coordinator-General.
4. Compensation negotiation
If a compensation offer is not accepted, we contact the claimant to arrange a conference. Our aim is to resolve the differences between the parties through negotiation.
The Coordinator-General settles most compensation claims through negotiation, if the initial compensation offer is not accepted. This is a more cost-effective way of resolving compensation for both parties.
If agreement on the compensation amount cannot be reached through negotiation, either party can refer the matter to the Land Court of Queensland for a decision. This is viewed as a last resort, due to its very high financial costs to both parties and lengthy processes.
5. Compensation payment
Compensation is paid as quickly as possible, if a compensation offer is accepted.
Advance payment
You may apply to the Coordinator-General for payment of an advance against compensation at any time after lodging a valid claim for compensation.
The amount of an advance is the Coordinator-General’s estimate of the amount of compensation payable based on the information available at the time.
Payment of an advance does not affect your right to negotiate additional compensation or to have the compensation amount determined by the Land Court of Queensland.
Payment to an existing mortgagee
For any mortgage owing at the date of resumption, the mortgagee can be paid from the compensation amount, unless they provide a clearance.
A clearance from the mortgagee/bank is required before any compensation payment (including any advance) can be made to you. Download the mortgagee consent letter (
144.0 KB) template.
Taxes, rates and charges
Any taxes, rates and charges due and unpaid at the date the land is resumed are the responsibility of the former landowner. Amounts owing may be deducted from any compensation payable.
Relevant resources
- Compensation claim form for claims made to the Office of the Coordinator-General (
378.5 KB)
- Sample mortgagee consent letter (
144.0 KB)
Contact us
We're here to help. Please contact us if you have any questions by:
- telephone – 1800 001 048
- email – acquisition@coordinatorgeneral.qld.gov.au.