Background
Transport for NSW acquired 1,017 square metres of Lot 8 in the Wentworth Point community scheme for the Parramatta Light Rail Stage 2 project. The acquired land, proposed Lot 701 in DP1329363, was excluded from the scheme when the acquisition notice was published. The balance of Lot 8, proposed Lot 700, remained within the scheme.
Lot 8 was a future development lot owned by SH Hill Road Development Pty Limited. Transport for NSW applied under s 73 of the Community Land Development Act 2021 (NSW) for orders restructuring the scheme. It notified the Registrar-General and all other statutory interested persons; none of the latter sought to be heard, and the Registrar-General consented to the proposed orders.
The Court’s Holding
Williams J held that it was appropriate, just and equitable to make the requested restructuring orders. The relevant question was whether the resumption altered the relative values of affected lots, such that unit entitlements or rights under management statements required adjustment.
Accepting the unchallenged valuation evidence, the Court found that the acquisition did not reduce Lot 8’s development potential or market value for this purpose, and did not alter the relative values of Lots 2, 6 and 8 or of lots in the two subsidiary strata schemes. It therefore ordered no changes to unit entitlements or management statements, confirmed Lot 701’s exclusion from the community scheme, and made the residue of former Lot 8 Lot 9 in the scheme. Transport for NSW was ordered to pay the Registrar-General’s costs.
Key Takeaways
- A partial resumption of community-scheme land requires a Supreme Court restructuring application under s 73 of the Community Land Development Act.
- Unit entitlements need not be changed where the resumption leaves the affected lots’ relative values unchanged.
- The Court may define the residue of a partly resumed lot as a replacement lot in the community scheme.
Why It Matters
The decision applies the established relative-value approach to community-title restructurings following compulsory acquisition. A resumption does not automatically require recalculation of unit entitlements or amendment of management arrangements.
For resuming authorities and community-scheme participants, the case illustrates the importance of notifying all interested persons and providing valuation evidence addressing both the affected lot and the remaining scheme lots.