Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Compensation - Additional compensation

72C: Additional compensation for acquisition of notified land

You could also call this:

“Extra money for people whose land is taken after being warned”

If your land is taken for a public project, you might get extra money. This happens if the government told you they might take your land, and then they did take it. You can get this extra money if you didn’t live on the land most of the time between when they told you and when they took it.

The extra money you get is usually 10% of what your land is worth. But there are some rules:

  • If 10% of your land’s value is less than $250, you’ll get $250.
  • If 10% of your land’s value is more than $25,000, you’ll only get $25,000.
  • You can’t get more than $25,000, even if lots of people own the land together.

If more than one person owns the land, only those who qualify will get the money. They’ll share it based on how much of the land they each own.

If you’re renting the land and your lease will end soon after the government takes it, you might get less money. The amount will be reduced based on how long your lease has left. But you’ll always get at least as much as a regular tenant would get.

Remember, there are some situations where you can’t get this extra money. These are explained in another part of the law called section 72D.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7237243.

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72B: Definitions of terms used in sections 72C and 72D, or

"Explaining important words used when the government needs your land"

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72D: Circumstances in which compensation must not be paid under section 72C, or

"When you can't get money for land taken by the government"

Part 5 Compensation
Additional compensation

72CAdditional compensation for acquisition of notified land

  1. Compensation must be paid to an owner of land if—

  2. the land has been notified; and
    1. the land is taken or acquired for the public work for which it was notified; and
      1. either of the following applies:
        1. the land does not contain a dwelling that was used as the owner of the land's principal place of residence for the period between the notification date and the vacant possession date:
          1. the owner used a dwelling on the land as his or her principal place of residence for less than a substantial part of the period between the notification date and the vacant possession date; and
          2. the payment of compensation is not excluded by section 72D.

            1. The compensation paid under subsection (1) must—

            2. equal 10% of the total land value; or
              1. be $250 if 10% of the total land value is equal to or less than $250; or
                1. be $25,000 if 10% of the total land value is equal to or more than $25,000.

                  1. However, the compensation paid under subsection (1) must not in total exceed $25,000 regardless of—

                  2. the number of owners of the land; or
                    1. the nature of the estate or interest each of the owners has in the land.

                      1. If compensation is paid under subsection (1) for land that is owned by more than 1 person, the compensation must be—

                      2. paid only to the qualifying owners; and
                        1. apportioned between the qualifying owners in proportion to the individual value each owner has in the land.

                          1. The amount of compensation paid under this section to an owner who is a lessee or sublessee of the land under a lease or sublease that will expire less than 5 years after the vacant possession date—

                          2. must be reduced so that it bears the same proportion as the period from the vacant possession date to the date of expiry of the lease or sublease bears to a period of 5 years; but
                            1. must not be reduced to less than the amount that the owner would have received under section 75 if the owner had been a tenant (as defined in section 75(4)).

                              1. For the purposes of subsection (5), the date on which a lease or sublease that contains a right of renewal will expire is deemed to be the date on which it would have expired if the right of renewal had been exercised.

                              Notes
                              • Section 72C: inserted, on , by section 195 of the Resource Legislation Amendment Act 2017 (2017 No 15).