Victorian Consolidated Legislation

Land Acquisition and Compensation Act 1986 - SECT 41

General principles on which compensation is to be based

41. General principles on which compensation is to be based



(1) Except as otherwise provided in this Part, in assessing the amount of
compensation payable to a claimant in respect of an interest in land which is
acquired under this Act, regard must be had to the following factors-

   (a)  the market value of the interest on the date of acquisition;

   (b)  any special value to the claimant on the date of acquisition;

   (c)  any loss attributable to severance;

   (d)  any loss attributable to disturbance;

   (e)  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;

   (f)  any legal, valuation and other professional expenses necessarily
        incurred by the claimant by reason of the acquisition of the interest.

(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.

(4) The expenses referred to in subsection (1)(f) do not include any costs
incurred by a claimant in the course of prosecuting any proceedings the
Tribunal or the Court under Part 10.

(5) If compensation has previously been paid in respect of the land pursuant
to Part 5 of the Planning and Environment Act 1987, the amount of compensation
payable under this Part in respect of an acquired interest in land or in
respect of land in which an acquired interest subsists must be reduced by the
prescribed amount.

(6) If the claimant's interest in the acquired land was liable to expire or to
be determined, the assessment of compensation payable under this Part in
respect of that interest must take account of any reasonable prospect of
renewal or continuation of the interest.

(7) In this section the prescribed amount in relation to land is the amount
calculated by the following formula-

where-

A = the amount of compensation previously paid in respect of the land for loss
of market value due to-

   (i)  the reservation or proposed reservation of the land or part of the
        land for a public purpose in a planning instrument; or

   (ii) any part of the land being required for a public purpose.

B = the market value of the land in respect of which the compensation was
paid, that value to be determined on the basis of the actual zoning that
applied to the land at the date which was the basis for the calculation of
that B = compensation.

C = the compensation payable under this Part for market value and severance
less the value of the land attributable to improvements of a durable nature
made-

   (i)  with the consent of the Authority under section 12(1)(b); or

   (ii) after the last date on which compensation was paid in respect of the
        land and before service of the most recent notice of intention to
        acquire an interest in the land.