Insights Library
National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Bill 2025: What it means for landowners
Victoria’s latest transmission reforms will directly affect landowners across the state. The National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Bill 2025 gives VicGrid and electricity corporations expanded powers to acquire easements, access private land, and reshape how transmission projects are delivered. For landowners, this means new obligations, new processes, and in many cases, significant impacts on property use and value. Understanding these changes early is critical to protecting your rights and maximising compensation.
Where is the Bill up to?
As at 1 September 2025, the National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Bill 2025 has passed both Houses of Victorian Parliament, although the Legislative Council made several amendments. The Legislative Assembly must now agree to those changes before the Bill is presented for Royal Assent. In practical terms, the reforms are well advanced but not yet law.
Key Legislative Council amendments included:
- reduced penalty levels for certain offences;
- a higher test for court-issued entry orders;
- clearer rules on who may be appointed as an authorised officer; and
- an additional biodiversity purpose for the new community fund.
What does the Bill do?
The Bill is described by the Victorian Government as the second stage of Victoria’s transmission planning reforms. It would:
- shift declared network functions from AEMO to VicGrid as a statutory body corporate;
- introduce grid impact authorities and new connection approval processes;
- establish a Renewable Energy Zone (REZ) Community Fund and a Traditional Owners Fund;
- exempt VicGrid from requiring a transmission licence when performing statutory functions;
- enable electricity corporations to acquire easements in gross; and
- expand statutory land access powers for investigations and works.
Commencement will occur progressively, with key provisions taking effect the day after Royal Assent and the balance by 1 June 2026 at the latest.
What are the parts that matter most for landowners?
Easements in gross
The Bill amends the Electricity Industry Act 2000 (Vic) to make clear that electricity corporations may acquire and register easements in gross. Unlike a standard easement, which benefits another parcel of land, an easement in gross is held directly by the utility and does not benefit adjoining land. For landowners, this change confirms that transmission companies can permanently register rights over private land for the construction and operation of transmission infrastructure, even where no neighbouring land benefits.
Once registered, the easement will restrict how the affected land can be used, limit development options, and give the utility long-term access rights. While landowners remain entitled to compensation, the reform strengthens the ability of electricity corporations to secure binding title rights and may increase the prevalence of compulsory easement acquisition across transmission corridors.
Case study: How an easement in gross may affect different properties
Farming property
A 200-hectare mixed farming property is identified for a new transmission corridor. A 70-metre wide easement in gross is created across the land. While the farmer can continue cropping and grazing, the easement restricts irrigation equipment above a certain height, prohibits planting of tall trees, and prevents new buildings in the corridor. Transmission crews may access the land for maintenance at any time, affecting stock management and paddock rotations. Compensation is payable, but the long-term land use flexibility is reduced and resale buyers may discount the property value due to the easement.
—
Suburban property
A 1-hectare block on the edge of a township is also affected by a transmission easement in gross. Although the landowner still owns the title, they cannot build within the easement area, which cuts across part of the site earmarked for subdivision. The restriction reduces the number of lots that can be created, affecting both yield and development feasibility. Compensation must reflect not only the burdened strip of land but also the lost development potential across the balance of the block.
New land access framework
The Bill introduces a statutory framework setting out how VicGrid and electricity corporations may enter private land for investigations and works. It replaces the current patchwork approach and is intended to standardise procedures, similar to what already exists for major road or water projects
How will entry to land occur?
Entry must follow a tiered process:
- Voluntary access – the preferred option, negotiated directly with landowners.
- Entry by notice – authorised officers may enter after providing written notice that specifies the dates, purpose, and officer details.
- Court-ordered entry – if voluntary access or entry by notice is not practicable, the Magistrates’ Court may issue an order, but only after considering whether Code of Practice obligations have been met.
Who can be an authorised officer?
The Minister may appoint classes of authorised officers, who must carry identification cards and act within the conditions of their appointment. Importantly, police cannot be appointed under this power.
Notice of proposed entry
Advance written notice will be required, setting out dates, purposes, and prescribed information. A forthcoming Code of Practice will govern how entry is managed. The Code is expected to set minimum standards for consultation, notice, conduct on land, safety, and mitigation of impacts. Compliance with the Code will be a statutory requirement, and a Magistrates’ Court must consider whether a proponent has met its Code obligations before granting an entry order.
What safeguards apply for landowners?
- Notice – written notice must be given in advance with prescribed details.
- Code of Practice – a binding Code will set rules for behaviour, consultation, safety and mitigation of impacts.
- Limits on entry – authorised officers cannot enter residences or buildings.
- Court oversight – procedural compliance with the Code will influence whether a court grants an entry order.
What happens if there is obstruction?
The Bill makes obstruction of an authorised officer an offence. However, the Legislative Council amended the Bill to reduce penalties, with the maximum reduced from 60 to 30 penalty units (approximately $12,210.60 to $6,105.30) and infringement notices reduced from 6 to 4 penalty units (approximately $1,221.06 to $814.40).
Benefit sharing: Community and biodiversity funding
The Bill establishes two new funding streams to be administered by VicGrid, being the Renewable Energy Zone (REZ) Community Fund and the Traditional Owners Fund. These funds are designed to ensure that host communities and Traditional Owners share in the benefits of Victoria’s energy transition.
The REZ Community Fund will provide grants for local projects and initiatives in areas hosting new or expanded transmission infrastructure. Legislative Council amendments to the Bill expanded its purposes to expressly include biodiversity outcomes, meaning funds can now support conservation programs and research alongside community facilities, amenity projects, and local services.
The Traditional Owners Fund is intended to provide direct benefits to Traditional Owner groups whose Country is affected by renewable energy and transmission projects, recognising their role as custodians of land and cultural heritage. For landowners and regional communities, this represents a shift from one-off easement compensation to a broader benefit-sharing framework, where long-term investment in local infrastructure, biodiversity, and cultural programs is tied to the rollout of the transmission network.
Practical steps for landowners
If you are within a likely or declared corridor:
- Check notices against the Code of Practice: confirm that the notice of entry includes all details required (dates, purpose, officer identification, and any conditions).
- Confirm authorised officer details: ensure the officer attending your property holds the correct authorisation and identification as required by the Code.
- Document compliance: keep records of communications, photographs of activities on your land, and notes on whether Code obligations (e.g. safety, minimisation of impacts, consultation) were met.
- Raise issues in writing: if you believe the Code has not been followed, notify VicGrid or the proponent in writing. This can be critical if a court application for entry is later made. Avoid onsite disputes as penalties apply for obstruction.
- Seek advice early: legal advice can help determine whether non-compliance is significant enough to challenge access or support a compensation claim.
Key takeaways
- The Bill is not yet law but is expected to pass shortly.
- VicGrid will become the central statutory planner and fund administrator for transmission projects.
- Land access rights and easement acquisition processes will be expanded and clarified.
- Notice, identification, and Code of Practice compliance will be essential.
- Penalties remain but are less severe than originally proposed.
- The Western Renewables Link EES has been exhibited, and the 2025 VTP provides the broader transmission framework across Victoria.
How Best Hooper can assist
At Best Hooper Lawyers, we act for landowners, agribusiness, and developers along transmission corridors. We can:
- review and respond to entry notices and survey protocols;
- negotiate access conditions that protect operations and safety;
- advise on easement terms, valuations, and constraints on future land use;
- assist with submissions on EES and planning processes; and|
- provide strategic advice on how Stage 2 reforms affect your projects.
At Best Hooper, we are uniquely positioned to guide landowners through the complex intersection of property, planning, renewable energy, and land compensation law. Our dedicated Land Development and Compulsory Acquisition Teams have deep expertise in navigating the evolving framework of transmission reforms, compulsory acquisition, and compensation entitlements.
We recognise that every property is unique and that infrastructure projects can have significant and varied impacts. That is why we provide bespoke, strategic advice tailored to each client’s circumstances. If you receive a notice or are affected by these reforms, our team will ensure your rights are protected, your interests are advanced, and that you achieve the best possible outcome.
Landowners are encouraged to contact Sebastian Greenway and Jonathan Hourigan, Partners at Best Hooper. With deep experience across property, planning, renewable energy and land compensation matters, they provide clear, strategic guidance and are well placed to protect your rights and advance your interests throughout the acquisition process.
