The Peel Region Scheme (PRS) is the statutory land use plan for the Peel Region. It classifies land into zones and reservations. As the need arises and the region develops, so the PRS will need to be amended.

The PRS is available for inspection at the Department for Planning and Infrastructure.

Under the PRS, zones are the areas identified for purposes such as residential (Urban zone), industry (Industrial zone), rural activities (Rural zone), Central City zone etc.

Reservations are areas that have been identified for a public purpose. Examples include school sites, railways, major roads, regional open space etc.

Prior to land being rezoned or reserved, owners are contacted and invited to make a submission on the proposed changes through the amendment process.

Land affected by a reservation will at some time be acquired by the Government, but can generally remain in private ownership until it is actually needed for the public purpose.

There are several options available to the owners of reserved land:

• Retain ownership and continue with the quiet enjoyment of the property until it is needed for the public purpose. You may complete any development or subdivision of the property that was approved prior to the reservation coming into effect.
• Sell the property on the open market to another person(s). The Western Australian Planning Commission (WAPC) recognises that, due to the reservation, this may be difficult. Therefore, subject to acquisition priorities and the availability of funds, the WAPC would be willing to consider purchasing a reserved property if an owner is unable to sell the land on the open market.
• Offer the property for sale to the WAPC. Subject to acquisition priorities and availability of funds, the WAPC would be willing to consider acquisition of a reserved property. Where this occurs, the property is purchased at the current market value, calculated as it would have been if the land was not affected by the reservation. The value is determined by independent sworn valuations. If necessary, there are avenues of arbitration and appeal for you, to make sure the valuation is fair.
• Make a claim for compensation for injurious affection if, due to the reservation, the WAPC refuses a development application or approves a development application subject to conditions unacceptable to you. In such cases, the WAPC may elect to purchase the property instead of paying compensation with the purchase price determined in the same way as a negotiated purchase.

Am I entitled to compensation?

If your land is reserved in the PRS, you may be able to make a claim for compensation for injurious affection if:

• You are the owner of the property when it is first reserved in PRS and you can only sell the property on the open market at a reduced price.

  or
  

• The WAPC has either refused a development application over the property or has approved a development application subject to conditions that are unacceptable to you. This applies whether you are the first or subsequent owner.

How do I claim compensation?

If you have chosen to sell the property on the open market at a reduced price and wish to receive compensation you will need to complete a Notice of Intention to Sell form that is available from the WAPC.

If you do so, the WAPC will confirm the extent of the reservation on the land and forward the notice to the Board of Valuers.

The Board will then determine the sworn unaffected value of the property. You may wish to meet with the Board to raise any matters you believe are relevant to the value of the property.

Following the determination by the Board:

• You will be notified of the unaffected value of the property.
• You pay a valuation fee to the WAPC, after which you will be notified of the affected value of the property - this will represent the minimum sale price.
• You then arrange sale of the property (privately or through a real estate agent). Note: The sale price must not be less than the affected value.
• When the property is sold, you may make a claim for compensation for injurious affection for the difference between the sale price and the unaffected value determined by the Board.
• If the property does not sell within one year of the Board's valuation, you may ask the Board for a revaluation of the property. The sale process is then repeated.
• Once compensation has been paid, a caveat is lodged on the Certificate of Title, to indicate that compensation has been paid. Please note that compensation is only payable once except where a further reservation is established or an existing reservation increased by amendment to the PRS.

Alternatively, you may ask the WAPC to purchase the property, as you have been unable to sell the property privately.

If the WAPC has refused your development application or approved it subject to conditions unacceptable to you and the property is reserved in the PRS, you may make a claim for compensation for injurious affection. This claim must be made within six months of the WAPC’s decision on the application.

In such a case the WAPC will either pay compensation or may elect to purchase the property in lieu of paying compensation.

If the WAPC elects to purchase the property, sworn valuations are obtained for the market value of the property as at the date of the election to purchase, calculated as it would have been if the land was not affected by the reservation. Please note that the date of valuation is fixed at the date of election to purchase.

What is compulsory acquisition?

A situation may arise where a property is needed as a priority for a public purpose and the owner is unwilling to sell the property to the WAPC.

In such a case, the property may be compulsorily acquired (or “taken”) for that public purpose.

Since 1963 the Metropolitan Region Scheme (MRS) for Perth has operated and the same provisions have applied. Under the MRS, compulsory acquisition is an option of last resort and only occurs for essential and committed public works. In relation to regional open space reservations, compulsory acquisition has very rarely taken place. The WAPC's preference is to acquire land by negotiated purchase when approached by the landowner.

If the WAPC has taken your property, you have the right to make a claim for compensation in respect of the land taken.

In such cases, the WAPC will have the land valued by sworn valuers and following the checking of the compensation claim will make an offer of compensation for the taken land.

In all cases avenues of arbitration and appeal are available in regard to the amount of compensation offered, if necessary.

Should you have any queries concerning the matters raised here, please contact the:

Land Asset Management Directorate
Western Australian Planning Commission
Albert Facey House
469 Wellington Street
Western Australia 6000

Tel (08) 9264 7777 Fax (08) 9264 7517
Internet: www.wapc.wa.gov.au
email: corporate@wapc.wa.gov.au