On 19 April 2017 the Resource Legislation Amendment Act 2017 came into force. This legislation greatly increases the additional compensation by way of solatium for injury to feelings of $2,000.

Additional Compensation for Acquiring an Owner’s Principal Place of Residence

Under section 72(1) of the Public Works Act additional compensation of up to $50,000 must be paid to the owner of land if the land being acquired contains a “dwelling that is used as the land owner’s principal place of residence” such as a family home that you live in.

Under section 72A, this compensation is calculated with a base of $35,000 with up to $50,000 available if certain conditions are met.

An additional $10,000 is available if you execute a Sale and Purchase Agreement, containing a vacant possession provision, within 6 months of the date you are notified of the intended acquisition of your land. As a result, it is vital to seek legal advice as soon as you become aware that your property might be affected by a public work to ensure you receive your full available entitlement.

Additional Compensation for Acquiring Land not Including the Owner’s Principal Place of Residence

Under section 72C, where land is not the owner’s principal place of residence, additional compensation of 10% of land value up to a maximum of $25,000 is available. Again, this is on the condition that vacant possession is given on the agreed date or within one month of vacant possession being required by notice in writing by the acquiring authority.

The summary above of the statutory amendments to the Public Works Act is based on information provided by Land Information New Zealand.


Warwick Wright as Principal of the firm has extensive experience in providing advice and guiding clients through this difficult process from start to finish.

Call Warwick today on 09 379 5828 or email him at wwright@rainey.co.nz for a free preliminary discussion on any issues concerning the compulsory acquisition of your land or the Public Works Act, and how he is able to help.