North East Link to start tunnelling while property owners above the route can’t claim compo

Most households who will soon live above the $26bn North East Link tunnels won’t be able to claim compensation for land the government has acquired.

Most households who soon will live above the $26 billion North East Link tunnels won’t be able to claim compensation due to sneaky law changes.

Tunnelling for the mega-toll road, which will connect the Eastern Fwy and M80 in Greensborough, is set to begin within a week.

Property owners along the route have been alerted to the construction plan, which includes for boring machines to churn out the project’s 6.5km tunnel structures.

Ongoing works on the North East Link in the eastern suburbs of Melbourne. Picture: David Crosling

But most residents won’t be eligible to claim compensation for land the Government has acquired under their properties, even if they have titles that run to the centre of the earth.

This is because in 2021, the Andrews Government changed the law to stop underground acquisition payouts for new projects, unless a tunnel is less than 15 metres from the surface.

Last year, about 40 Yarraville residents won what was believed to be $100,000 each due to the fact their properties were above the $10.6bn West Gate Tunnel.

They had argued that because land was taken under their homes, and they had older titles that go to the centre of the earth, they were entitled to compensation.

The Government had fought claims by arguing tunnels increase property values due to access to new infrastructure, but quietly settled the West Gate Tunnel case last year.

The entrance for the North East Link being constructed at Watsonia. Picture: NCA NewsWire

Property owners above the $14bn Metro Tunnel, which began construction last decade, have also fought a long-running legal battle for cash.

Adrian McMillan, a senior associate at Slater and Gordon which ran the successful Yarraville and Metro Tunnel actions, said even the rights for compensation for property owners within 15m of a tunnel had their rights to compensation reduced by the recent law changes, brought in as part of a Bill for the contentious 90km Suburban Rail Loop under middle Melbourne.

“This is manifestly unfair. The Government is acquiring people’s land and not paying a cent for it,” he said.

“It is unfair to limit the rights of compensation for people who can demonstrate a loss caused by an action of Government such as the compulsory taking of land.”

A State Government spokesman said the North East Link’s tunnels had been extended from 4.6km to 6.5km to reduce disruption for landowners and sensitive environmental areas, and had reduced the number of acquisitions needed.

“The longer 6.5km North East Link tunnels from Watsonia to Bulleen will be built up to 45 metres underground – passing traffic under instead of through local suburbs,” he said.

“The design and depth of the tunnels ensures landowners can continue using their land in the same manner as they do today, and does not preclude them from undertaking future activities such as building cellars or swimming pools.”