Barns v Director-General, Department of Transport

The Land Court in Barns v Director-General, Department of Transport was asked to determine compensation for land resumed under the Acquisition of Land Act 1967 and Transport Infrastructure (Roads) Act 1991. The property, which was zoned as "Rural A" in the Maroochy Shire Town Planning Scheme, was resumed for "future road requirement" purposes. The claimants sought compensation of $4,308,000, while the constructing authority proposed $280,000. The key legal issues were the highest and best use of the land, the potential for rezoning, and the appropriate valuation method. The Court found that the land had potential for urban rezoning, contrary to the constructing authority's valuation, which was based solely on its subdivisional potential as zoned. The Court accepted the claimants' valuation method of hypothetical development, despite criticisms, as it allowed for a detailed consideration of the property's potential. The Court also considered the Cox sale, a nearby transaction conditional on rezoning, which influenced the valuation of the land. Ultimately, the Court determined an overall in globo value of $10,500 per hectare before resumption and calculated compensation at $487,500, plus agreed disturbance costs of $6,776, for a total of $494,276. Interest was ordered at 8.5% per annum on the compensation amount.