Shepparton Corridor Upgrade: What the New Project Area Declaration Means for Landowners

Sebastian Greenway & Jonathan Hourigan
9 October 2025

The Victorian Government has advanced the next stage of the Shepparton Corridor Upgrade, a major transport infrastructure program aimed at improving rail and road connections between Melbourne and the Goulburn Valley. The project forms part of the State’s long-term commitment to strengthen regional freight efficiency and passenger services, complementing the Victorian and Commonwealth Governments’ joint investment in the Shepparton Line Upgrade and broader Freight Victoria Strategy.

On 8 October 2025, the Minister for Planning declared an expanded Project Area under section 96(3)(a) of the Major Transport Projects Facilitation Act 2009 (Vic) (MTPF Act). The declaration, published in the Victoria Government Gazette, identifies land that may be required for construction, access, and associated works for the Shepparton Corridor Upgrade.

For affected landowners, this declaration has significant implications. Whilst it does not amount to immediate acquisition, it introduces legal consequences under Victoria’s compulsory acquisition framework. Understanding how Project Area declarations operate, and the rights that follow, is critical to protecting your interests and maximising compensation if acquisition occurs.

What Is the Shepparton Corridor Upgrade?

The Shepparton Corridor Upgrade is a large-scale infrastructure initiative designed to modernise the rail and road network servicing Victoria’s north. It is said to:

• Improve travel times between Melbourne and Shepparton;
• Enhance freight capacity for the Goulburn Valley agricultural and manufacturing sectors;
• Support population growth across regional centres; and
• Integrate with the State’s broader Regional Rail Revival and Major Transport Infrastructure Program.

The project involves staged upgrades to rail signalling, passing loops, station facilities, and level crossing removals. It may also involve new road linkages or bridge works to enhance multimodal transport connectivity.

What Does a Project Area Declaration Mean?

A Project Area declaration formally reserves land for a public purpose. While it does not authorise works or acquisition immediately, it marks the land as potentially required for the project and restricts actions inconsistent with its future use.

Under section 5 of the Land Acquisition and Compensation Act 1986 (Vic) (LAC Act), this reservation has the same legal effect as a public reservation, signalling that the land may be compulsorily acquired at a later stage.

Once declared, the reservation may influence:

• Property value and marketability – potential purchasers or financiers may view the land as encumbered; 
• Development approvals – planning authorities may refuse or defer applications inconsistent with the reservation; and
• Land use certainty – the market may perceive long-term restrictions or risk of future acquisition.

The effect is comparable to a Public Acquisition Overlay in a planning scheme, alerting landowners that the land is earmarked for a future public project.

Rights and Compensation Under the LAC Act

If the Shepparton Corridor Upgrade proceeds to acquisition, affected landowners are entitled to compensation under the LAC Act. Compensation may include:

• Market Value – the fair market value of the land at the acquisition date, disregarding project-related impacts;

• Severance – loss in value to retained land where only part is acquired; and

• Special Value – additional value the land holds for the owner due to its unique use or significance;

• Disturbance Costs – relocation, professional fees;

• Professional Costs – the cost of obtaining legal, valuation and planning advice to advance your claim for compensation; and
• Solatium – non-financial disadvantage from being displaced from your property.

Even before formal acquisition, the declaration may affect how land can be used, financed or sold. Early strategic and valuation advice can assist in mitigating these risks and preparing for any future claim.

How the MTPF Act Streamlines Project Delivery

The MTPF Act is designed to accelerate the delivery of major transport infrastructure by streamlining planning, environmental and land acquisition approvals. Once land is within a declared Project Area, the Project Proponent (usually the Department of Transport and Planning or an appointed authority) can progress environmental assessments, detailed design and statutory approvals under a single integrated process.

The Act also allows for:

• The application of Early Works Orders to begin preparatory activities;
• The ability to designate land for access and investigations; and
• Simplified transition to compulsory acquisition under the LAC Act once the final project alignment is confirmed.

For landowners, this framework means the project can progress more rapidly than under standard acquisition processes, emphasising the need for early legal engagement.

Implications for Shepparton Landowners

If your property falls within or near the newly declared Project Area, you should:

• Obtain a copy of the gazetted declaration and project maps;
• Identify whether your land is directly affected or within an investigation zone;
• Record any communications, survey requests or notices from the project authority; and
• Seek independent legal and valuation advice before signing or agreeing to access arrangements.

The declaration does not authorise compulsory acquisition yet, but it places your land within the scope of potential future acquisition.

Best Hooper’s Experience

Best Hooper Lawyers is a market-leading Victorian firm in compulsory acquisition, property, and planning law. Our team has represented landowners and developers across the State in projects such as the Western Renewables Link, VNI West, Marinus Link, Suburban Rail Loop and North East Link Project.

We work closely with valuers, planners and engineers to:

• Assess the full extent of loss and disturbance;
• Prepare and lodge compensation claims;
• Negotiate early settlements and access agreements; and
• Represent clients in proceedings before VCAT and the Supreme Court of Victoria.

Next Steps for Landowners

If your property is within or near the Shepparton Corridor Upgrade Project Area:

• Contact Best Hooper Lawyers to review the extent of your land’s inclusion and the implications of the declaration;
• Take steps to understand your rights and the project’s legal framework;
• Keep comprehensive records of all correspondence and mapping from the project team; and
• Seek professional valuation advice early to benchmark your property’s pre-project value.

Early engagement ensures you are fully informed, prepared for future negotiations, and positioned to protect your interests.

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, major projects, land access 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.

This article provides general information only and is not intended as legal advice. Landowners should obtain specific legal and valuation advice based on their circumstances.