[2025] VCAT 609
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-09-15
Original judgment source is linked above.
No offer has been received as Major Road Projects claims that the project authority did not exercise any powers under the Major Transport Projects Facilitation Act 2009 (Vic) to temporarily divert traffic. Further, no powers under the Road Management Act 2004 (Vic) which would give rise to an entitlement for compensation pursuant to section 127 of the RM Act were exercised for the purposes of the temporary diversion of traffic. Further, access to the premises was not denied during the diversion.[2]
On or about 9 January 2024, the Project Authority exercised its power under section 186D(1)(c) of the Major Transport Projects Facilitation Act 2009 (Vic) (MTPF Act) (or an alternative section of the MTPF Act or the Road Management Act 204 (Vic) (RM Act)) to temporarily divert traffic from the intersection at Hall Road and Narre Warren Road and Thompsons Road to a temporary roadway or a temporarily deviated road, and the effect of the exercise of that power was that access to the premises was denied until the temporary diversion concluded on 13 February 2023. As a direct result of the denial of access to the premises, APCO Service Stations Pty Ltd (APCO) made significantly less shop sales and fuel sales at the premises, resulting in a loss of profit comprising the profit it would have made but for the denial of access to the premises. APCO claims that it is entitled to compensation in accordance with 127 of the RM Act.[3]
Section 127 - Compensation payable by a road authority in certain circumstances
(1) This section applies in addition to any other provision of this Act relating to compensation payable by a road authority if the effect of the construction of a freeway or a decision under clause 2 of Schedule 2 is that existing access to any land is denied.
_(2) Compensation is not payable under this section if - _
a) there is adequate existing alternative access to the land; or
b) the road authority provides, or agrees to provide, adequate alternative access to the land; or
c) if a policy was in force under clause 3 of Schedule 2 before a proposed development of the land had commenced and the need for access which has been denied relates to the proposed development; or
d) the road authority has instituted compulsory acquisition procedures under the Land Acquisition and Compensation Act 1986; or
e) a claim for compensation is not served on the road authority within one year of the completion of the construction or the making of the decision.
(3) For the purposes of determining whether alternative access to the land is adequate, no regard is to be had as to which stream of traffic has access to the land.
(4) Compensation is to be determined on the basis of the diminution in the value of the land to which access is denied as a direct result of the loss of access to that land.
(5) Parts 10 and 11 and section 37 of the Land Acquisition and Compensation Act 1986, with any necessary modifications, apply to the determination of compensation under this section as if the claim were a claim under section 37 of that Act.
Section 186D Other powers relating to the management of roads and traffic
_(1) A project authority may, for the purposes of an approved project or any purpose connected with an approved project, do any one or more of the following - _
a) provide for temporary roadways on relevant land;
b) temporarily deviate a road over relevant land;
c) temporarily divert traffic onto a temporary roadway or a temporarily deviated road;
d) close a road to traffic;
e) open a road to traffic.
_(2) In this section - _
_"relevant land" means - _
a) project land; or
b) land owned by the project authority; or
c) land temporarily occupied by a project authority under this Part; or
...
d) land occupied and used under section 167; or
e) land within a road reserve (within the meaning of the Road Management Act 2004); or
_f) land owned by a person other than the project authority - _
- that is under the management or control of the project authority; and
- in relation to which the project authority has obtained the written consent of that person to use that land as a temporary road.
[Emphasis added to identify the provision relied upon]
Section 186E - Notification of exercise of road powers relating to temporary deviations
_(1) A project authority must publish in the Government Gazette notice of the doing of either or both of the following under section 186D by the project authority - _
a) the temporary deviation of a road;
b) the temporary diversion of traffic onto a temporary roadway or a temporarily deviated road.
_(2) A notice under subsection (1) must specify the date on which, as the case requires - _
a) the temporary deviation of the road commences; or
b) the temporary diversion of traffic onto a temporary roadway or a temporarily deviated road commences.
(3) The date specified under a notice under subsection (1) must not be earlier than the date on which the notice is published in the Government Gazette.
Section 191A - Compensation for temporary diversions or deviations of road that deny access
(1) Subject to subsection (2), a project authority is liable to pay compensation in accordance with this section to a person who has interest in land who sustains a pecuniary loss or incurs an expense as a direct, natural and reasonable consequence of the exercise of a power under section 186D(1)(b) or (c) if the effect of the exercise of that power is that access to that land is denied.
Section 186D(1)(b) provides for the temporary deviation of a road. Section 186D(1)(c) provides for the temporary deviation of traffic onto a temporary roadway or a temporarily deviated road.
_(2) Compensation is not payable under this section for the denial of access if - _
(2) For the purposes of determining whether alternative access to the land is adequate, no regard is to be had as to which stream of traffic has access to the land.
(3) Any claim for compensation under this section must be made and dealt with in accordance with the Land Acquisition and Compensation Act 1986 as if it were a claim under section 47(1) of that Act.
(4) Section 127 of the Road Management Act 2004 does not apply in respect of any matter for which compensation is payable under this section.
Section 47 - Compensation for entry or temporary occupation
_(1) Any person with an interest in land that has been entered or temporarily occupied pursuant to Part 9 who has - _
a) sustained any pecuniary loss; or
_b) incurred any expense - _
c) as a direct, natural and reasonable consequence of that entry or occupation may claim the amount of that loss or expense from the Authority.
(2) Subject to section 106(1), a claim under subsection (1) must be made within two years after the day on which the Authority was last in occupation of or upon the land.
(3) In addition to the amount of loss or expense which may become payable under subsection (1), the Authority must during the period of its occupation of the land pay half-yearly or quarterly to the person or persons entitled to receive the rent from the land the amount of rent agreed upon between the parties or, failing agreement, fixed by the Court or the Tribunal, as the case may be.
Section 80 - Application or referral of disputed claim
a) apply to the Tribunal for determination of a disputed claim in accordance with this Act; or
b) refer a disputed claim to the Court for determination in accordance with this Act.
Section 43 - How is original jurisdiction invoked?
_The original jurisdiction of the Tribunal is invoked - _
a) by a person who is entitled by or under an enabling enactment to do so applying to the Tribunal in accordance with section 67; or
b) by a matter being referred to the Tribunal under an enabling enactment in accordance with section 69; or
c) in any other way permitted or provided for by the enabling enactment.
Section 75 - Summary dismissal of unjustified proceedings
_(1) At any time, the Tribunal may make an order summarily dismissing or striking out all, or any part, of a proceeding that, in its opinion - _
a) is frivolous, vexatious, misconceived or lacking in substance; or
b) is otherwise an abuse of process.
(2) If the Tribunal makes an order under subsection (1), it may order the applicant to pay any other party an amount to compensate that party for any costs, expenses, loss, inconvenience and embarrassment resulting from the proceeding.
_(3) The Tribunal's power to make an order under subsection (1) or (2) is exercisable by - _
a) the Tribunal as constituted for the proceeding; or
b) a presidential member; or
c) a member who is an Australian lawyer.
(4) An order under subsection (1) or (2) may be made on the application of a party or on the Tribunal's own initiative.
(5) For the purposes of this Act, the question whether or not an application is frivolous, vexatious, misconceived or lacking in substance or is otherwise an abuse of process is a question of law.
The Tribunal must act fairly and according to the substantial merits of the case in all proceedings.
a) is bound by the rules of natural justice;
b) is not bound by the rules of evidence or any practices or procedures applicable to courts of record, except to the extent that it adopts those rules, practices or procedures;
c) may inform itself on any matter as it sees fit;
d) must conduct each proceeding with as little formality and technicality, and determine each proceeding with as much speed, as the requirements of this Act and the enabling enactment and a proper consideration of the matters before it permit.
(2) Without limiting subsection (1)(b), the Tribunal may admit into evidence the contents of any document despite the non-compliance with any time limit or other requirement specified in the rules in relation to that document or service of it.
(2A) Without limiting subsection (1), at the hearing of a proceeding the Tribunal may admit into evidence any material put before the Tribunal at an earlier stage of the proceeding, or any material put before the Tribunal in another proceeding, if the Tribunal considers it desirable to do so.
(2B) Subsection (2A) is subject to any other provision of this Act, an enabling enactment or any other law that provides that evidence or material is not admissible in a proceeding.
The Project is part of a program of road projects referred to as the 'suburban road upgrades'. > > In general terms, the Project involves the upgrade of Cranbourne-Narre Warren Road between Thompson Road and South Gippsland Highway. This includes the development of additional lanes, service roads, new traffic lights, pedestrian crossings, upgraded intersections, and new and upgraded shared walking and cycling paths. > > On 1 August 2019, the Project was declared to be a project to which the MTPFA (other than Parts 3 and 8) applies and the Minister for Transport Infrastructure was appointed the Project Minister for the Project. > > On 23 January 2020, the Project Minister appointed the Respondent to be the "project proponent" for the Project. > > On 27 March 2020, the Minister for Planning designated the project area for the Project, pursuant to s 95(2)(a) of the MTPFA. Upon designation of the project area, the Project became an "approved" project under the MTPFA and the Respondent became the "project authority" for the Project under the MTPFA. An extract showing the project area in relation to the Land is provided below. > >
(b) temporarily deviate a road over relevant land; and
(c) temporarily divert traffic onto a temporary roadway or a temporarily deviated road ...:
Temporary deviation of a road > > 33 The term "temporarily deviated road" is contained in both section 186D(1)(b) and (c). > > 34 Section 3 of the MTPFA defines "road" to have the same meaning as in the RMA. > > 35 Accordingly, for the purposes of 186D(1)(b) and (c), a "road" includes: > > (a) any public highway; > > (b) any ancillary area; and > > (c) any land declared to be a road under section 11 of the RMA or forming part of a public highway or ancillary area. > > 36 The temporary deviation of a "road" requires provision of a new section of road in a different location to the existing road, and the project authority must give notice of the temporary road deviation in the Government Gazette as per section 186E of the MTPFA. > > 37 There are recent examples of this occurring as part of the works for the North East Link Project both at the intersection of Greensborough Highway and Elder Street, Watsonia and at Bulleen Road. In each case, the notices published in the Government Gazette show how the relevant roads are temporarily deviated by the construction of a new section of road. > > 38 There was no temporary deviation of any road as part of the Works in this case. > > 39 Accordingly, there is no basis for any claim to be made by the Applicant in connection with the Project in respect of either: > > (a) the temporary deviation of a road under section 186D(1)(b); or > > (b) the temporary diversion of traffic onto a temporarily deviated road under section 186D(1)(c). > > Temporarily diversion of traffic onto a temporary roadway > > 40 Section 186D(1)(c) enables a project authority to temporarily divert traffic onto a "temporary roadway". > > 41 the term "temporary roadway" is not defined in the MTPFA. However, the following guidance is provided in the Explanatory Memorandum for the Suburban Rail Loop Bill 2021, which inserted section 186D in the MTPFA:15 > > New section 186D includes a power to create and manage temporary roads and traffic on roads, including to divert or deviate any road. The provision enables a project authority to create a roadway on relevant land or deviate an existing road, and to divert traffic onto that road. The provision is intended to provide a clearer mechanism for a project authority to provide alternative throughways while it uses a road for project purposes. The temporary or deviated roadway is intended to operate as the de facto road, without having the consequence that land becomes a legal road (in the sense of a public highway which has to be discontinued, and which would result in the vesting of ownership under Schedule 5 to the Road Management Act 2004). As road is defined to have the same meaning as the Road Management Act 2004, being a legal road, "roadway" is used to describe a "built road" (it is not intended to have the same limited meaning as roadway has under the Road Management Act 2004). > > (Emphasis added, in bold). > > 42 In this context, the term "roadway" in the MTPFA describes the built road and can be distinguished from the concept of a "road" and the meaning of "roadway" in the RMA. > > The Works did not involve the creation or use of any "temporary roadway" as that term is to be understood for the purposes of the MTPFA. > > 44. The Works involved: > > (a) the temporary closure of part of some roads to traffic (including parts of Cranbourne-Narre Warren Road and Thompson Road in the immediate vicinity of the Land); > > (b) the implementation traffic detours using parts of the existing road network; and > > (c) the implementation of traffic control devices (such as traffic signage and signals). > > 45. Similar to the temporary deviation of a "road", the temporary diversion of traffic onto a temporary roadway would require provision of a new temporary roadway in a different location from the existing road. This did not occur as part of the Works or the broader Project activities. > > 46. Only parts of the existing and permanent road network were used to detour traffic around the temporary closure of parts of Cranbourne-Narre Warren Road and Thompson Road. > > 47. Further, if there had been a temporary diversion of traffic onto a temporary roadway, the project authority would have been required to give notice of this in the Government Gazette, as per section 186E of the MTPFA. No such notice was given because no temporary roadway was created.
The primary basis for that statement appears to the applicant to be that the respondent did not:
a) exercise a power under section 186D(1)(b) of the MTPF Act to "temporarily deviate a road over relevant land"; and/or
b) exercise a power under section 186D(1)(c) of the MTPF Act to "temporarily divert traffic onto a temporary roadway or a temporarily deviated road",
with the result that the applicant is not entitled to compensation under section 191A.[23]
[p]rinciple requires that a high degree of caution be exercised before a proceeding is summarily dismissed" under section 75 of the VCAT Act. > > ... > > The deputy registrar and, on review, the member conflated the questions whether Mr Khan was entitled to bring the application and whether the application complied with the VCAT Act with the altogether different question concerning his entitlement to the relief that he sought. The issue confronting Mr Khan when he made his application under s 114 was not one of jurisdiction.[25]
Whether or not the "temporary 'contraflow arrangement'" constituted:
a) a temporary deviation of a road over relevant land for the purposes of section 186D(1)(b) of the MTPF Act; or
b) a temporary diversion of traffic onto a temporary roadway or a temporarily deviated road for the purposes of section 186D(1)(c) of the MTPF Act,
are matters that go to the merits of the application, rather than whether the Tribunal has jurisdiction to entertain it.
Respondent's 28 February 2025 Reply Submissions
There being no standing to bring the cancellation request, the proceeding is bound to fail and is appropriately dismissed pursuant to s 75(1).
a) the only way that there could be a "disputed claim" is if there was an exercise of a power under section 186D(1)(b) or (c) of the MTPFA; > > b) there was no such exercise of power and there is no jurisdiction conferred on the Tribunal by an enabling enactment; > > c) the Applicant is not entitled, and does not have standing, to apply for determination of a "disputed claim" under section 191A(4) of the MTPFA and section 80 of the LACA; > > d) applying Maddingley, the Application is therefore bound to fail and should be summarily dismissed.
Applicant's 4 April 2025 Response to the Tribunal's 24 March orders
... the applicant's position in respect of each of the facts set out in paragraphs 23, 26 and 27 of the respondent's submissions dated 14 February 2025 is as follows:
a. the applicant accepts that the Works did not involve the construction or use of any temporarily deviated road; and
b. the applicant does not accept on a proper construction of the Major Transport Projects Facilitation Act 2009 (Vic) (MTPF Act), the Works did not involve the use of a "temporary roadway". The term "temporary roadway" is not defined in the MTPF Act. On a proper construction of that term, while the "contraflow arrangement" used the existing roadway, the use of the roadway in that manner constituted a temporary roadway onto which traffic heading in a southerly direction was diverted (from the eastern section of the roadway).
3. In relation to paragraph 27, the applicant accepts the accuracy of that paragraph.
7. The term "relevant land" is defined in section 186D(2) to mean: > > (a) project land; or > > (b) land owned by the project authority; or > > (c) land temporarily occupied by a project authority under this Part; or > > Example > > Section 165D. > > (d) land occupied and used under section 167; or > > (e) land within a road reserve (within the meaning of the Road Management Act 2004); or > > _(f) land owned by a person other than the project authority - _ > > (i) that is under the management or control of the project authority; and > > (ii) in relation to which the project authority has obtained the written consent of that person to use that land as a temporary road. > > 8. This definition includes various types of land, some of which do not part of the existing road network. In this context, the power in subsection 186D(1)(a) to "provide for temporary roadways" should be understood as providing the project authority with the ability to construct a temporary roadway over "relevant land" which includes land that does not form part of an existing road. > > 9. The respondent relies upon the Explanatory Memorandum for the Suburban Rail Loop Bill 2021 as previously cited. > > 10. This passage states that section 186D enables a project authority to "create a roadway on relevant land ... and divert traffic onto that road". This is consistent with a temporary roadway being something that is constructed (with materials such as asphalt, bitumen, gravel, lane markers and lines etc.), and provided by the project authority as a de facto road, without having the consequence that land becomes a legal road.
(a) First, there must be a temporary diversion of traffic. > > (b) Second, it must be "onto a temporary roadway".[39]
(a) there was no exercise of section 186D(1)(c) of the MTPFA;
(b) section 191A of the MTPFA is not, and cannot as a matter of law be engaged;
(c) there is no enabling enactment that provides the Tribunal with jurisdiction in this proceeding; and
(d) the Applicant does not have standing to make the Application under section 191A of the MRPFA because the Applicant is not "a person who ... sustains a pecuniary loss ... as direct, natural and reasonable consequence of the exercise of a power under section 186D(1)(b) or (c) ..."
In any event, paragraph 8 of those submissions ignores the ordinary grammatical sense of the words of section 186D, and should be rejected accordingly. As the plurality of the High Court of Australia said in Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue, "[t]he language which has actually been employed in the text of legislation is the surest guide to legislative intention". > > A departure from the text is not otherwise justified by virtue of any conflict with other provisions of the MTPF Act, inconsistency with the purposes of the MTPF Act, nor incapability of practical application. [42]
By the end of the exchange of submissions the applicant had addressed the critical propositions in the respondent's submissions which are reproduced for convenience below. 
on a proper construction of the MTPF Act, the Works did not involve the use of a temporary roadway. The term "temporary roadway" is not defined in the MTPF Act. On a proper construction of that term, while the "contraflow arrangement" used the existing roadway, the use of the roadway in that manner constituted a temporary roadway on which traffic heading in a southerly direction was diverted (from the eastern section of the roadway).
a project authority is liable to pay compensation in accordance with this section to a person who has interest in land who sustains a pecuniary loss or incurs an expense as a direct, natural and reasonable consequence of the exercise of a power under section 186D(1)(b) or (c) if the effect of the exercise of that power is that access to that land is denied.
b) temporarily deviate a road over relevant land; > > c) temporarily divert traffic onto a temporary roadway or a temporarily deviated road.
[1] The submissions of the parties have all been considered. In accordance with the practice of the Tribunal, not all the material will be cited or referred in these reasons.
[2] Application form dated 20 December 2024.
[5] The applicant was advised by registry on 7 April 2025, 1 May 2025 and 2 June 2025, that unless technical error occurred, all documents and requests must be lodged via LV Hub.
[15] Ibid [22], [23]. The Tribunal made Orders on 24 March 2025 for the filing of any evidence that a party intends to rely upon concerning the Tribunal's jurisdiction to consider the application made by the applicant under s 191A of the MTPF Act. The applicant advised on 2 May 2025 that it did not intend to rely on any evidence.
[16] (Respondent's 14 February submission).
[17] Respondent's 14 February submissions 2025 [3].
[21] (Applicant's 7 February 2025 Reply).
[22] Applicant's 7 February 2025 Reply, [2].
[27] (Respondent's 14 February 2025 Submissions).
[28] Respondent's Reply Submissions 28 February 2025.
[29] Referring to the relevant works set out in paragraphs [22]-[28] in Respondent's 14 February 2025 Submissions.
[30] Respondent's Reply Submissions 28 February 2025 [1(g)]. (Footnotes omitted)
[35] (Respondent's 11 April 2025 Reply Submissions).
[40] (Applicant's 30 May Submissions).
[41] Applicant's Final Submissions [7].
[42] Ibid [7], [8] (footnotes omitted).
[43] Head, Transport for Victoria v Kilpatrick and Anor [2024] VSC 686, at [15].
[44] The Respondent's 28 February 2025 submission at [1(g)(4)].
[45] Respondent's Submissions 14 February 2025 [16], [17].
[46] As the Australian lawyer who has decided the questions of mixed fact and law and whether the power under section 75 of the VCAT Act should be exercised.
[47] As submitted by the applicant on the basis of the decision in Khan at [87].
[48] See the requirements of s 98 and 99 VCAT Act. In this case the applicant has been given numerous opportunities to make submissions and provide evidence and has not objected to this matter being determined "on the papers" pursuant to the Tribunal's orders.
[49] Which the respondent says would involve considering matters including the nature and quantum of pecuniary loss, the adequacy of alternative access and where the loss claimed was a 'direct natural and reasonable consequence' of the of the exercise of power which would require evidence in respect of these matters. See the Respondent's 28 February Submissions at 17(e).
[50] Cognisant of the guidance provided in exercising this task by the many cases in which this power has been discussed and exercised including: Axiom Pty Ltd v Melton CC (Red Dot) [2020] VCAT 190 at [9] and the cases upon which those principles are based and the discussion of this provision in Maddingley.
[51] See the requirement under section 43 of the VCAT Act which invokes the Tribunal's jurisdiction on application from a 'person who is entitled by enabling enactment'.
[52] Respondent's Reply Submissions 28 February 2025 [20].
[53] Comprised of an Australian lawyer who has decided the questions of mixed fact and law and whether the power under section 75 of the VCAT Act should be exercised.
APCO Service Stations Pty Ltd
Secretary to the Department of Transport and Planning