Lands Acquisition Amendment Regulations 2018

Overview

The Lands Acquisition Amendment Regulations 2018, issued under the authority of the Assistant Minister for Treasury and Finance, aim to refine the Lands Acquisition Act 1989 by amending the Lands Acquisition Regulations 2017. These amendments seek to resolve ambiguities in the interest rates applicable for compensation payable under the Act, ensuring clarity and precision in the calculation of interest on compensation for compulsorily acquired land. The changes are intended to align the Principal Regulations with the correct Commonwealth government 5-year bond rate, as listed by the Reserve Bank of Australia. The Regulations were developed in consultation with the Office of Best Practice Regulation, which deemed the amendments to be minor and not requiring a Regulatory Impact Statement. These Regulations are a legislative instrument under the Legislation Act 2003, and they have been reviewed to ensure compatibility with human rights as declared under the Human Rights (Parliamentary Scrutiny) Act 2011. The Lands Acquisition Act 1989, enacted to govern the acquisition of land by the Commonwealth and certain authorities, provides for the payment of interest on compensation when such payments are delayed. The Lands Acquisition Amendment Regulations 2018 address a gap in the Principal Regulations by clarifying the interest rate calculation, ensuring that interest holders are compensated accurately and in accordance with the current financial benchmarks. These Regulations are designed to streamline the process of compensation for land acquisitions, providing clear guidance on the interest rates to be applied. The changes will take effect from 1 November 2018, with the Regulations set to commence the day after their registration.

Scope and Application

The Lands Acquisition Act 1989 applies to the acquisition of land by the Commonwealth and certain authorities, along with dealings with land that has been compulsorily acquired. The Act applies to both persons and entities involved in such transactions, ensuring that compensation is appropriately calculated and paid when acquisition is delayed. The Act’s jurisdictional reach is national, as it pertains to the Commonwealth of Australia. There are no specific exclusions or thresholds mentioned in the Act itself, but regulations and subordinate instruments can further define and restrict its application. The Lands Acquisition Amendment Regulations 2018, made under Section 140 of the Act, amend the Principal Regulations to clarify the interest rate applicable to compensation for delayed payments. These amendments specify that the relevant interest rate is the Commonwealth government 5-year bond, as listed in the Reserve Bank of Australia’s table. The Amendment Regulations are a legislative instrument under the Legislation Act 2003 and are compatible with human rights, as affirmed by the Office of Best Practice Regulation and the Australian Government Solicitor.

Key Provisions

The Lands Acquisition Amendment Regulations 2018 (Amendment Regulations) amend the Lands Acquisition Regulations 2017 (Principal Regulations) to clarify the interest rate applied to compensation for land compulsorily acquired under the Lands Acquisition Act 1989 (the Act). Specifically, the Amendment Regulations aim to explicitly state that the interest rate is the Commonwealth government 5-year bond, as listed in the table published by the Reserve Bank of Australia. This amendment affects sections 8 and 9 of the Principal Regulations, which pertain to the interest payable on compensation where payment is delayed. By updating the reference to the correct bond rate, the Amendment Regulations ensure clarity and consistency in the calculation of interest for landholders (sections 2-4). The Amendment Regulations impose specific obligations on the parties involved in land acquisitions under the Act. Landholders who have had their land compulsorily acquired and are entitled to compensation interest payments must now rely on the clarified interest rate as specified in the Amendment Regulations. The Commonwealth, as the entity responsible for paying compensation interest, is required to adhere to the updated interest rate for accurate interest calculations. The Reserve Bank of Australia's table on Capital Market Yields-Government Bonds-Monthly-F2.1 serves as the reference point for determining the applicable interest rate. This ensures that interest payments are calculated correctly and transparently, reflecting the most current and accurate data available (Attachment A, Schedule 1). The Amendment Regulations do not introduce new offences or penalties but clarify existing provisions related to interest payments on compensation. Failure to adhere to the correct interest rate as specified in the Amendment Regulations could lead to disputes between landholders and the Commonwealth regarding the accuracy of compensation interest payments. Such disputes could potentially be addressed through existing legal mechanisms, including seeking a review or judicial determination of the compensation amount, including interest. While the Amendment Regulations themselves do not introduce new penalties, non-compliance with the specified interest rate could result in legal consequences if landholders challenge the accuracy of their compensation payments (Attachment B). The Amendment Regulations are designed to be compatible with human rights as recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The Office of Best Practice Regulation (OBPR) has confirmed that the amendments are minor and do not engage any of the applicable rights or freedoms. Consequently, the Amendment Regulations do not raise any human rights issues and are compatible with human rights principles. The Australian Government Solicitor was also consulted to ensure the accuracy of the Reserve Bank of Australia rate applied in the Regulations. The Regulations are compatible with human rights as they do not engage any of the applicable rights or freedoms and do not raise any human rights issues (Attachment B).