--- title: "Compulsory Acquisition & Compensation Valuation" url: https://australianproperty.network/apn-codex/series-30000/series-36000/series-36500/ date: 2026-08-11 modified: 2026-09-06 lang: en author: "Nicklas Clark" description: "Technical Reference 36500  —  Compulsory Acquisition & Compensation Valuation Components: 3 · Property Valuation (Technical) (36000) 1 Overview Node 36500 addresses the specific valuation methodology and statutory framework applicable where..." word_count: 768 --- # Compulsory Acquisition & Compensation Valuation Technical Reference ### 36500  —  Compulsory Acquisition & Compensation Valuation Components: 3 · Property Valuation (Technical) (36000) 1 #### Overview Node 36500 addresses the specific valuation methodology and statutory framework applicable where property is compulsorily acquired by government or a statutory authority, rather than transacted voluntarily on the open market. Compulsory acquisition valuation engages a distinct set of considerations from conventional valuation, principally the requirement that an acquiring authority compensate the affected landowner on just terms. The series is organised into three sub-series, each addressed in a subordinate node: just terms and statutory compensation, covering the constitutional and statutory framework requiring fair compensation and its component heads of claim; valuation for resumption, covering the methodology applied to value land actually taken as at the statutory date of acquisition; and injurious affection and severance, covering compensation for the diminution in value of land retained by an owner following a partial acquisition. This node serves as a navigational and definitional entry point for parties requiring an understanding of compulsory acquisition and compensation valuation, directing the reader to the more detailed subordinate node addressing each component. 2 #### Scope & Boundaries This node addresses the structure of the compulsory acquisition and compensation valuation sub-series and the general proposition that compensation valuation differs from conventional market valuation in its statutory basis and hypothetical construct. It does not itself set out general valuation methodology, addressed in node 36100, or the professional standards and reporting framework applicable across all sectors, addressed in node 36200. It does not address the administrative or procedural steps by which an acquiring authority exercises its compulsory acquisition power, which is a legal and procedural matter addressed in APN's separate property law content. Scope Note This node provides a structural overview of the compulsory acquisition and compensation valuation sub-series as at the time of writing. The specific compensation entitlement and valuation methodology applicable to a given acquisition should be confirmed against the applicable acquiring legislation and current case law. 3 #### Key Concepts Just Terms Compensation The constitutional and statutory principle requiring an acquiring authority to compensate a landowner on just terms when compulsorily acquiring property, addressed in node 36510. Valuation for Resumption The valuation methodology applied to determine the market value of land compulsorily acquired, generally assessed as at the statutory date of acquisition, addressed in node 36520. Injurious Affection and Severance Compensation payable for the diminution in value of land retained by an owner following a partial acquisition, whether through severance of the parcel or injurious effect on the remainder, addressed in node 36530. 4 #### Regulatory & Legal Framework - Land Acquisition (Just Terms Compensation) Act 1991 (NSW) State land acquisition authorities And equivalent legislation in other states establishes the statutory just terms compensation framework. - Lands Acquisition Act 1989 (Cth) Commonwealth acquiring authorities Governs compulsory acquisition of land by the Commonwealth. - Valuation of Land Act State Valuers-General (state-based, for example the Valuation of Land Act 1916 (NSW) and equivalent legislation in other states) is frequently the source of the statutory valuation methodology applied in compensation assessments. 5 #### Practical Application Compulsory acquisition compensation is assessed differently depending on whether an entire holding or only part of a landowner's property is taken. | Scenario | Application | Outcome | | -------- | ----------- | ------- | | A state road authority compulsorily acquires part of a rural property for a highway corridor | The valuer assesses compensation comprising the market value of land taken plus injurious affection to the retained balance | The landowner receives just terms compensation reflecting the acquisition's full impact | | A local council resumes land for a public open space reserve | The valuer applies valuation for resumption methodology as at the statutory date of acquisition | Compensation reflects the land's market value at the relevant statutory date | | A landowner's remaining holding suffers reduced access following a partial acquisition | The valuer separately assesses severance and injurious affection to the retained land | Compensation reflects the diminished utility of the remaining property | 6 #### Cross-Series References [ 36510 Just Terms & Statutory Compensation The constitutional and statutory framework requiring fair compensation and its heads of claim. ](/apn-codex/series-30000/series-36000/series-36500/series-36510/) [ 36520 Valuation for Resumption The methodology applied to value land actually taken as at the statutory acquisition date. ](/apn-codex/series-30000/series-36000/series-36500/series-36520/) [ 36530 Injurious Affection & Severance Compensation for the diminished value of land retained after a partial acquisition. ](/apn-codex/series-30000/series-36000/series-36500/series-36530/) Findings are presented on the basis of data and evidence alone. Node Parameters Node ID36500 Series36000 Property Valuation (Technical) RegisterTechnical Reference Standard JurisdictionAustralia (all states & territories) StatusPublished In This Sub-Series - [36500Compulsory Acquisition & Compensation Valuation](/apn-codex/series-30000/series-36000/series-36500/) - [36510Just Terms & Statutory Compensation](/apn-codex/series-30000/series-36000/series-36500/series-36510/) - [36520Valuation for Resumption](/apn-codex/series-30000/series-36000/series-36500/series-36520/) - [36530Injurious Affection & Severance](/apn-codex/series-30000/series-36000/series-36500/series-36530/) Related Analytical Nodes - [30000Property Encyclopedia & Technical Guides](/apn-codex/series-30000/) - [31000Property Types & Sectors](/apn-codex/series-30000/series-31000/) - [32000Property Development & Construction](/apn-codex/series-30000/series-32000/) - [33000Property Investment & Finance (Technical)](/apn-codex/series-30000/series-33000/) - [34000Property Management & Operations (Technical)](/apn-codex/series-30000/series-34000/) - [35000Property Law (Technical)](/apn-codex/series-30000/series-35000/) - [37000Property & Casualty Insurance (Technical)](/apn-codex/series-30000/series-37000/) #### In this sub-series - [Injurious Affection & Severance](https://australianproperty.network/apn-codex/series-30000/series-36000/series-36500/series-36530/)- [Just Terms & Statutory Compensation](https://australianproperty.network/apn-codex/series-30000/series-36000/series-36500/series-36510/)- [Valuation for Resumption](https://australianproperty.network/apn-codex/series-30000/series-36000/series-36500/series-36520/)