The recent NSW Court of Appeal Judgment of Goldmate Property Luddenham No 1 Pty Ltd v Transport for New South Wales [2024] NSWCA 292 has overturned the decision of the Land and Environment Court (“LEC”), providing clarity as to the principles of ‘public purpose’ under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (“Just Terms Act”) relating to the valuation of land in compulsory acquisitions by government authorities.
Background Summary
- On 19 March 2021, Transport for NSW (“TfNSW”) issued a proposed acquisition notice to acquire a part of 31.79 hectares of land located at 777-819 Luddenham Road, Luddenham (“the Land”) that Goldmate had purchased in November 2020 for $33,056,500. The purpose of the acquisition was to facilitate in the construction of the M12, being a part of the Western Sydney Infrastructure Plan (“WSIP”) and linked to the construct the Western Sydney Airport (“WSA”). Relevant areas around the WSA were rezoned from RU2 to EUT pursuant to the State Environmental Planning Policy (Western Sydney Aerotropolis) 2020 (“Aerotropolis SEPP”), including the Land.
- On 30 June 2021, TfNSW acquired 14.66 hectares of the Land (“Acquired Land”) under the Roads Act 1993 (NSW) (Roads Act) to facilitate the construction of the M12 motorway.
- The primary issue in dispute was whether the public purpose had caused the change in zoning from RU2 to ENT and a subsequent increase in market value.
- The market valuation of the parties and Valuer General was as follows:
| Valuer General’s determination | Goldmate | TfNSW | |
| Market Value | $0 | $55,437,200 | $4,000,200 |
| Disturbance | $160,116.58 | $199,527.59 | $167,979.78 |
| Total | $160,111.58 | $55,636,727.59 | $4,168,179.78 |
Land and Environment Court Proceedings [...]
