A person, known as a claimant, who has an alienable interest in land at the date of its acquisition is entitled to compensation if that interest is either divested or diminished by the acquisition, or the enjoyment of the interest is adversely affected by the acquisition [s 22B]. This includes owners, tenants, mortgagees and easement holders.

The owner of the land acquired is entitled to compensation to the value of the land and any loss suffered [s 25(1)]. If the value of the land and the amount of compensation is unable to be determined, the Authority must, at the request of the person affected, convene a valuers conference [Land Acquisition Act 1969 (SA) s 23(7)]. The valuers conference is a meeting between valuers who have made separate valuations of the land, to determine a valuation of the land that is acceptable to both valuers [s 23(8)].

Both the Authority and the land owner or claimant must negotiate in good faith in relation to the compensation payable for the acquisition of land [s 23(1)]. If the parties fail to negotiate in good faith, the Supreme Court may take this into account when awarding costs [s 36(b)(iii)].

The Authority must, within 7 days after making an offer of compensation, pay the amount offered into the Supreme Court [s 23A(3)]. A person to whom an offer of compensation is made must respond to the offer in writing within 6 months from the date of the offer [s 23AB]. A person may apply to the Authority for a longer period of time in which to respond to the offer of compensation.

In the event that an amount of compensation does not exceed $50,000, the payment of compensation may be made directly to the claimant in a manner determined by the Authority, rather than being paid into the Supreme Court [s 26A, Land Acquisition Regulations 2019 (SA) reg 12].

The Authority may also make a payment (up to the sum of $10,000) to the claimant for payment toward professional costs relating to the acquisition of the land, including legal costs and valuation costs [Land Acquisition Act 1969 (SA) s 26B, Land Acquisition Regulations 2019 (SA) reg 13].

If an agreement about compensation is reached by the negotiating parties, the Authority must file a copy of the agreement in the Supreme Court [Land Acquisition Act 1969 (SA) s 23B(1)]. If an agreement cannot be reached either the Authority or anyone affected can apply to the Supreme Court to resolve the matter.

Solatium

The compensation paid by the Authority may be increased by way of a solatium payment if at the time the notice of intention to acquire land was given the person was an owner and occupier of the land and if as a result of the acquisition of the land the person's principal place of residence was acquired [s 25A(1)]. The solatium payment will be either 10% of the market value of the land being acquired or $50,000, whichever is the lesser amount [s 25A(4)]. The solatium payment will be made on final resolution of the amount of compensation payable in relation to the acquisition of the land [a 25A(2)]. The purpose of this payment is to compensate someone for non-financial disadvantage or loss (eg. emotional stress) resulting from being compulsorily displaced from their home.

Replacement Land

If the Authority has acquired land under the provisions of the Land Acquisition Act 1969 (SA) and the person who was the owner of the acquired land has purchased other land in South Australia to replace the acquired land (within 24 months of the land acquisition of a principal place of residence or 12 months in any other case) the Authority may pay transfer costs in relation to the purchase of the replacement land (eg. stamp duty and registration fees) [see Land Acquisition Act 1969 (SA) s 26D(2)]. An application for payment of the transfer costs in relation to the replacement land must be made within 24 months of the land acquisition by the Authority [s 26D(3)(b)], and the replacement land must be generally similar in nature to the acquired land and purchased in the same ownership structure as the acquired land [Land Acquisition Act 1969 (SA) s 26D(4) and Land Acquisition Regulations 2019 (SA) reg 15].

Residential Tenants

After a notice of intention to acquire land is given to a person who is a residential tenant of the land, but before the land is acquired, the Authority may pay the residential tenant a sum for relocation costs (up to the amount of $10,000) [Land Acquisition Act 1969 (SA) s 26C(1), Land Acquisition Regulations 2019 (SA) reg 14]. If the residential tenant accepts a payment toward relocation costs they will not be eligible for further compensation [Land Acquisition Act 1969 (SA) s 26C(2)].