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ARTICLE · 03 MAY 2016

Compensation for reserved land under the WA Planning and Development Act

Clayton Utz
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A purchaser of land affected by a reservation may claim compensation even if the reservation existed before the purchase.

AustraliaReal Estate and Construction
Brad Wylynko
Brad Wylynko
Mark Etherington
Mark Etherington
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Key Points:

A purchaser of land in WA injuriously affected by a planning scheme reservation may apply for compensation, even if the reservation existed prior to purchase.

In a recent decision (currently subject to a special leave application to the High Court), the West Australian Court of Appeal upheld a decade old contention that purchasing land already reserved for a public purpose is no bar to claiming compensation for the reduction in value of that land resulting from the reservation.

Under the Planning and Development Act 2005 (WA), compensation claims for the value reducing effect of public purpose reservations (under planning schemes) can be made:

  • by the seller of land, if they owned the land at the time the reservation was imposed; or

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