This circular has been replaced by DFSI-2017-02 Improvements to the Land Acquisition Process.

This circular supplements OFS-2015-01 Changes to Land Acquisition Processes by Acquiring Authorities.

The Government is committed to a land acquisition process that is both fair and efficient.  In response to reviews of land acquisition processes by David Russell SC and the Customer Service Commissioner, this circular imposes a number of legislative and administrative requirements on acquiring authorities to –

• Improve fairness and transparency
• Provide for a fixed 6 month negotiation period
• Facilitate timely payment of compensation to land owners.
• Minimise as far as possible the risk of disputation.

The new requirements include obligations on acquiring authorities and the Valuer General, as outlined in detail in Attachment A.

The legislative requirements take effect from 1 March 2017 – with the exception of increased compensation for disadvantage resulting from relocation (formerly solatium) to a maximum $75K; and the removal of the obligation to pay rent after a Proposed Acquisition Notice is issued, which are already in place.

However, unless the other legislative and administrative requirements are impractical (for example because a project or acquisition process is already well underway) and would place an unnecessary cost burden on the NSW taxpayer, implementation should commence immediately.

A high level overview of minimum transitional arrangements, pending the commencement of the legislation, is provided at Attachment B.

In order to ensure compliance with these transitional arrangements, acquiring authorities (with the exception of local councils) must obtain the joint approval of the Customer Service Commissioner, Mike Pratt AM, and the Deputy Secretary for Customer Services at Transport for NSW, Tony Braxton-Smith, prior to commencing acquisition negotiations with property owners.

The new plain English section 39 form is provided at Attachment C.

Specific enquiries, including advice on approach to in-flight or near term acquisitions may be directed to the Customer Service Commissioner or Central Policy Office at Department of Finance, Services and Innovation:

• [email protected]
• [email protected]

Further information, including the Plain English Land Acquisition Guide, the NSW Government response to the Russell and Customer Service Commissioner Reviews, and related guidance materials, are available at www.landacquisition.nsw.gov.au.