Insights Library

Compensation for Planning Blights – Amendments to Part 5 of the Planning and Environment Act 1987

Joel Snyder & Ruby Rockman

In March 2021, Royal Assent was given for amendments to the Planning and Environment Act 1987 by the introduction of the Planning and Environment Amendment Bill 2021. The revisions were said to be introduced to address confusion about when a claim for compensation can be made for compensations under Pt 5 of the Act for financial loss, being where land is identified as being required for a future public purpose.

New provisions have been introduced to section 98 of the Act to qualify that the right to claim only arises when land is reserved for an express public purpose in the Planning Scheme such as where a Public Acquisition Overlay is placed on the land. Similarly, a right to compensation from a refusal of a permit will not be available if such use or development was expressly prohibited by a Planning Scheme.

This appears to expressly exclude claims where property is sterilised due to being identified as land required for a public purpose in a Precinct Structure Plan without the implementation of a Public Acquisition Overlay for the same purpose. These changes highlight the importance of such overlay as a precursor to a claim for a financial loss.

The compensation provisions have also now been redrafted to expressly exclude inner public purpose land under an Infrastructure Contributions Plan.

Best Hooper is Victoria’s Property, Planning and Land Development Advisory Law Firm that commonly acts for landowners and developers in seeking compensation for planning blights under Pt 5 of the Planning and Environment Act 1987. We are one of the leading firms in this area of practice.

If you wish to discuss how these amendments or any restriction on development due to a public acquisition overlay or reservation for public purposes affects you, please contact our Land Development Team.

Joel Snyder

Managing Principal
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Ruby Rockman

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