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Commonwealth act
This Act has been repealed and is no longer in force. It is retained for historical reference.
What this law does (mechanics)
Gives the Commonwealth power to acquire land for any "public purpose" (see definition in s5) either by agreement with an owner or by compulsory acquisition directed by the Governor‑General (ss13–15). When the Governor‑General issues a Gazette notification the land vests in the Commonwealth (s16) and existing trusts, leases and most rights are converted into claims for compensation (s17).
Sets out the administrative chain: the Governor‑General authorises acquisitions and the Minister implements them (ss14–15). The Attorney‑General acts for the Commonwealth in executing conveyances and instruments (ss14(3), 57). Courts (High Court, State Supreme Courts and lower courts where applicable) resolve disputes about compensation and related orders (Parts IV and divisions therein).
Establishes how affected people and States are paid: who may claim, time limits to claim (usually 120 days, s33), how claims are processed by the Minister (s34), and how disputed claims are determined (by agreement, action against the Commonwealth, or court process — s36). Compensation bears interest (3% pa) from acquisition until payment or deposit (s40). Where claimants do not present title or take payment, the Minister may deposit compensation in the Treasury (s43) and the courts can order payment out of that deposit (ss45–46).
Provides rules for temporary entry and occupation for surveys, works and taking materials connected to a public purpose, with rent or compensation for damage (ss21–24, 31). It also gives the Minister powers to make temporary buildings and roads and to take materials from nearby lands where needed (s23).
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Direct links to the current provisions in Lands Acquisition Act 1906.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Deals with mortgages, encumbrances and leases when land is acquired: the Minister can redeem mortgages where acquisition is by agreement (s48), mortgagees retain rights to claim or share in compensation where land is compulsorily acquired (ss49–53), and apportionment rules exist where only part of encumbered or leased land is taken (ss54–56).
Includes ancillary powers: registration of notifications in State land registries (s20), authorising mining leases on Commonwealth land subject to State mining law (s62), disposing of surplus Commonwealth land (s63), and regulation‑making powers for administration (s67). The Act also repeals the earlier 1901 Property for Public Purposes Acquisition Act (s3) and treats the Commonwealth as a corporate body able to hold land (s57).
Who it affects and who pays
Affected parties: owners and occupiers of land (including private owners, lessees, mortgagees, trustees, corporations and States in respect of Crown land — see definitions in s5 and various Parts), persons temporarily entered upon, and parties with encumbrances or leases over land taken.
Who pays: the Commonwealth pays compensation and bears the costs of conveyancing and related expenses (s61). Compensation may be paid as a cash sum or, in the case of a State, at the Governor‑General's option by making the Commonwealth responsible for an equivalent public debt liability (s41). If compensation is deposited in the Treasury, the Treasurer may invest it at the claimant's risk (s44).
Decision‑makers and discretion
Governor‑General: approves acquisitions by agreement (s14) and directs compulsory acquisition (s15); may authorise leasing of low‑value land (s63(1)(b)).
Minister: serves notifications, inspects and temporarily occupies land, sets or negotiates rent for temporary occupation, processes and offers on compensation claims, may extend claim time limits if satisfied the claim is bona fide (ss18,21–24,34,33(2)).
Attorney‑General: executes conveyances and may sign documents on behalf of the Commonwealth; also is the official who must be satisfied about title before payment from the Commonwealth (ss14(3), 57, 45).
Courts: resolve disputed compensation claims (ss36–38), apportion encumbrances and rent when part only of land is taken (ss54,56), and make binding orders on rights to deposited compensation (ss46,39).
Compliance burdens and effect on private choices
Owners and other claimants must serve written claims specifying prescribed particulars and using prescribed forms (s32). Claims must be made within statutory time limits (generally 120 days: s33), unless the Minister extends time (s33(2)).
Claimants must produce deeds and evidence of title on request (s60), and lessees claiming for unexpired terms must produce leases on demand or be treated as tenants at year to year (s30).
Mortgagees may claim compensation or join mortgagors (s49), and compensation payable is subject to the mortgage as a charge until discharged (s52).
Costs, incentives, trade‑offs and implementation risks (mechanisms, not verdicts)
Direct fiscal cost: the Commonwealth bears compensation, conveyancing costs and interest (ss40,61). The Act allows the Commonwealth to invest deposited compensation, but invests “at the risk of the person entitled” (s44), shifting investment risk to claimants when deposits are invested.
Administrative discretion: the Minister has wide administrative discretion to inspect land, enter temporarily, take materials, set temporary rent, process and make offers on claims, and extend claim timeframes (ss21–24,34,33(2)). Those discretions concentrate procedural power in the executive and create opportunities for negotiation (s34) but also mean outcomes for claimants can vary with administrative choices.
Legal adjudication path: parties can either negotiate, bring an action against the Commonwealth, or have the Minister apply to a court to determine compensation (ss36–38). Court determinations are final and without appeal under the Act (ss38(4),39(5)), so the litigation pathway is decisive but can foreclose appeals.
Rights affected and substitution effects: vesting on Gazette notification (s16) converts private estates into monetary claims (s17); owners who do not claim timely risk ministerial application to courts to fix compensation without their initiation (s39). Temporary occupation and taking of materials (ss21–24) can cause short‑term disruption and trigger claims for damage (s31).
Concentrated benefits/diffuse costs: benefits of particular acquisitions accrue to specific public works or agencies using the land; costs (compensation, administration, investment outcomes on deposits) are borne by the Commonwealth (taxpayers) and claimants' recovery prospects depend on compliance with procedural rules and administrative cooperation (ss34,43–45).
Key statutory constraints and protections
Valuation timing rules: value is fixed to a particular reference date (generally 1 January before acquisition) and the valuation excludes increases caused by the proposal to carry out the public purpose (s29).
Parliamentary oversight: in specified circumstances either House may declare a notification void within 30 days after the notification is laid before it (s19).
Registration and title certainty: Gazette notifications can be registered in State land registers and treated as conveyances for registration purposes (s20); payments and deposits by the Commonwealth discharge its obligations (s47).
Sections especially relevant for immediate practical effect: ss13–18 (how acquisition happens and vesting), ss26–45 (who gets compensation, how it is calculated, procedural steps and payment), ss48–56 (mortgages, encumbrances, leases), ss21–24 (temporary occupation powers), s61 (costs borne by the Commonwealth), s20 (registration) and s57 (Commonwealth may hold land).