SOLATIUM

Solatium is an old compensation concept that aims to provide compensation by way of a single payment for all those intangible losses suffered by the dispossessed owner. For example, loss of neighbourhood contacts, extra expenses of sending children to a new school, and travelling expenses in maintaining sporting and social contacts. Western Australia, Victoria and NSW are the only states that provide for the payment of solatium. S25(g) of the South Australian Land Acquisition Act 1969 expressly forbids the payment of a solatium. The ALRC recommended that solatium be part of the compensation package taking into account:

• the nature of the claimant's interest
• the length of residence prior to resumption
• the extent of inconvenience likely to be caused
• the period after resumption during which the person has been or will be, allowed to remain in possession of the land.
• the period of time during which the person would have been likely to continue to reside on the resumed land.