AustraliaThe government pre-acquisition declaration reduced my property value but then didn't proceed. Can I claim loss?
Yes, you may be entitled to compensation for financial loss caused by a pre-acquisition declaration that reduced your property’s value, even if the government later abandoned the acquisition — provided the declaration was made under Part 3 of the Land Acquisition Act 1989 (Cth) or equivalent state legislation.
What the Law Says
Under the federal Land Acquisition Act 1989 (Cth), a pre-acquisition declaration (also called a 'notice of intention to acquire') can significantly affect property value — even if the acquisition never proceeds. The law recognises this harm and provides a right to compensation in specific circumstances.
Section 20(1) of the Land Acquisition Act 1989 (Cth) states that compensation is payable if a person suffers financial loss because of a notice given under section 19 — which includes a notice of intention to acquire land. This applies even when the acquisition does not go ahead.
The loss must be directly caused by the notice — for example, a demonstrable reduction in market value, inability to sell or refinance, or increased holding costs attributable to the declared intention.
Compensation is limited to financial loss actually suffered, not speculative or indirect losses. It does not include compensation for distress, inconvenience, or loss of amenity unless quantifiable as financial detriment.
Statutory TextCompensation is payable to a person who suffers financial loss because of a notice given under section 19.
— Land Acquisition Act 1989 (Cth), s. 20(1) — Compensation for financial loss caused by notice
What to Do
Confirm whether the notice was issued under s. 19 of the Land Acquisition Act 1989 (Cth) or your state’s equivalent (e.g., NSW: Land Acquisition (Just Terms Compensation) Act 1991).
Gather evidence of financial loss — e.g., before-and-after valuations, declined offers, loan refusal letters, or expert reports linking the drop in value to the notice.
Lodge a written claim for compensation with the acquiring authority within 6 months of the notice being withdrawn or lapsing.
If the claim is rejected or unreasonably delayed, apply to the Administrative Appeals Tribunal (AAT) for review — or, in some states, to the relevant state tribunal or court.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.