Significant increase in public works compensation for critical infrastructure

The new compensation payable under the Public Works (Critical Infrastructure) Amendment Act represents a significant benefit for affected property owners.

Previously, an owner whose land was acquired for a public work could, in addition to the unaffected market value and costs of moving from the land, claim up to $50,000 in additional compensation.

As of 27 August 2025, owners of property being acquired for “critical infrastructure projects” (as listed in Schedule 2A of the Act) may instead claim:

• a recognition payment (5% of the value of the land capped at $92,000); and

• an incentive payment (15% of the value of the land capped at $150,000)

provided the owner agrees to the sale without the requiring authority having to take formal steps to acquire the land (and other conditions being met).

This additional compensation of up to $242,000 (rather than $50,000) is designed to reward property owners who voluntarily sell their land, thereby accelerating the land acquisition process for important infrastructure projects.

According to Grimshaw & Co partner Gareth Lewis: “This is surely one of the most generous public compensation regimes to have existed in New Zealand.”

Critically, at the second reading of the Bill the select committee recommended a provision whereby owners who obtain orders for early acquisition from the Environment Court are eligible for the recognition payment of $92,000.

Lewis states: “Most of our public works enquiries are from owners whose land is affected by a Notice of Requirement or Designation, and they wish to apply for an early acquisition so they can get on with their lives. The recognition payment will help them do that.”

The infrastructure projects in Schedule 2A, being those eligible for the new compensation, include the Airport to Botany Bus Rapid Transit, Auckland North-West Rapid Transit, State Highway 16 alternative highway and the Warkworth to Te Hana motorway.  

Grimshaw & Co regularly act for property owners affected by public works and obtain orders for early acquisition from the Environment Court. Contact us for a free consultation and specialist advice. 

September 2025