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Public Works Act 1981

Acquisition or taking of land for critical infrastructure projects - Compensation payable under this Part

39AAK: Compensation payable under this Part

You could also call this:

"Getting paid if the government takes your land"

Illustration for Public Works Act 1981

If you own land and the Minister or a local authority wants to acquire it, you might get compensation. This happens if they ask you to agree to give up your land and you do. You will not get compensation if section 39AAL says you cannot.

You get compensation for the land being taken, which is worked out according to Part 5, but not including some parts like section 72A(1)(b) or (c). You also get compensation because your land is being used for a critical infrastructure project. If you agree to give up your land before the authority has to take it, you get more compensation.

The compensation for the critical infrastructure project is 5% of the total land value, or $92,000, whichever is less. The extra compensation for agreeing to give up your land is 15% of the total land value, but it can be $5,000 if the land value is low, or $150,000 if the land value is high.

If many people own the land, the compensation is shared between them based on how much of the land each person owns. The total compensation for the critical infrastructure project cannot be more than $92,000, and the total extra compensation for agreeing to give up the land cannot be more than $150,000.

In this law, an "owner" means what it says in section 59, and "total land value" means what it says in section 72B. If you own land and this law does not apply to you, you might still get compensation according to other parts of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1498110.

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Part 2AAcquisition or taking of land for critical infrastructure projects
Compensation payable under this Part

39AAKCompensation payable under this Part

  1. The compensation specified in subsection (2) must be paid to an owner of land if—

  2. the Minister or a local authority, as the case may be, has sought agreement with them to acquire their land; and
    1. the land is acquired or taken under this Part; and
      1. the payment of compensation is not excluded by section 39AAL.

        1. The compensation to be paid is—

        2. compensation to which the owner is entitled under Part 5 for the acquiring or taking of the land, except any compensation payable under section 72A(1)(b) or (c); and
          1. compensation in recognition of the land being acquired or taken for a critical infrastructure project; and
            1. compensation in recognition of the benefit to the Crown or local authority in not having to take the land compulsorily, if the owner is party to an agreement by which the land is acquired before a notice of intention to take the land is given or served under section 23 (as modified by section 39AAH).

              1. The compensation paid under subsection (2)(b) must—

              2. equal 5% of the total land value of the land; or
                1. be $92,000 if 5% of the total land value is equal to or more than $92,000.

                  1. The compensation paid under subsection (2)(c) must—

                  2. equal 15% of the total land value of the land; or
                    1. be $5,000 if 15% of the total land value is equal to or less than $5,000; or
                      1. be $150,000 if 15% of the total land value is equal to or more than $150,000.

                        1. However, the compensation paid—

                        2. under subsection (2)(b) must not in total exceed $92,000 regardless of—
                          1. the number of owners of the land; and
                            1. the nature of the estate or interest each of the owners has in the land:
                            2. under subsection (2)(c) must not in total exceed $150,000 regardless of—
                              1. the number of owners of the land; and
                                1. the nature of the estate or interest each of the owners has in the land.

                                2. If compensation is payable under subsection (2)(b) or (c) for land that is owned by more than 1 person, the compensation must be—

                                3. paid only to those owners of land who qualify under subsection (1); and
                                  1. apportioned between those qualifying owners in proportion to the individual value each owner has in the land.

                                    1. For the purposes of this section, an owner of land referred to in section 18(7)(c), (d), or (e) must be treated as if they were a party to an agreement by which the land is acquired before a notice of intention to take the land is given or served under section 23.

                                    2. In this section,—

                                      owner has the same meaning as in section 59

                                        total land value has the same meaning as in section 72B.

                                        1. In subsection (6)(b), individual value means the portion of total land value for each category of interest or estate in land (for example, all leasehold interests in land) that is payable to an owner described in subsection (6)(a), determined by the percentage of the relevant category of interest or estate that the owner holds.

                                        2. To avoid doubt, this section does not limit or affect any entitlement to compensation under this Act that an owner of land to which subsection (1) does not apply may have. (For example, if the Minister seeks agreement only with the fee simple owner of a parcel of land and the land is acquired or taken under this Part, an owner of any other estate or interest in that same parcel is entitled to compensation under this Act if the Act so provides for it.)

                                        Notes
                                        • Section 39AAK: inserted, on , by section 5 of the Public Works (Critical Infrastructure) Amendment Act 2025 (2025 No 46).