The government overpaid John $81K when it resumed his home. Now it wants it back

When the Queensland government compulsorily acquired John Davies’ home for a road project, a public servant accidentally left a “9” in the wrong spot on paperwork, meaning he was overpaid $81,000.

Now the state government wants Davies to pay the money back – amid a $424 million project cost blow-out and the federal government axing its funding.

The state agreed to pay Davies $509,750 for his Mooloolaba unit in 2022.

John Davies had his home resumed for the Mooloolah River Interchange. But an error by the Queensland government has led to him being asked to repay $81,000.Credit: Google Street View

But a state government official incorrectly listed compensation at $590,750, before rates and solicitor fees.

It was an error Davies said was not noticed by him, his solicitor or the government.

A year-and-a-half later, in February and March 2024, Transport and Main Roads (TMR) demanded Davies repay the money, and in August advised they would sue if he refused, for $81,000, plus interest of $11,338.48 and $1698 for costs.

“I believe it’s a complete fail from TMR,” Davies said.

“I have not received any apology or accountability.”

TMR acquired 157 properties at a cost of $119 million for the Mooloolah River Interchange, which includes a new road overpass and connection, separating local traffic from high-speed motorway traffic at Mooloolaba on the Sunshine Coast.

A TMR spokeswoman said the department was obliged to recover the overpayment of public funds when the error was identified.

“In one instance, a property owner accepted TMR’s offer to settle compensation for compulsory acquisition and was subsequently made aware of the compensation amount that was set to be paid by TMR,” she said.

“During the payment process, an administrative error led to the property owner receiving a higher amount of compensation than he had accepted.

“Where a person has been unjustly enriched because of an administrative error, it is appropriate for the overpayment to be recovered.”

The spokeswoman said the owner agreed to repay $81,000 via a payment plan and TMR was not seeking interest.

The Mooloolah River Interchange has a lengthy history, with resumptions over more than two decades, and in November, the Mooloolah River Interchange was stripped of federal funding , losing $160 million for stage one.

TMR says it is “investigating viable solutions and alternative funding strategies to deliver this important project” after losing federal funding.

In December, Transport Minister Bart Mellish revealed stage one, budgeted at $320 million in June 2023, had blown out to $743.6 million.

The TMR spokeswoman said there were labour and materials cost escalations, changes in road, bridge and rail standards, and unprecedented property market conditions in the Sunshine Coast region.

“The MRI upgrade remains a priority for the Queensland government, and design work is progressing,” she said.

Resumptions for the Mooloolah River Interchange began in 2001 under the Beattie Labor government, the Palaszczuk government decided not to proceed in 2015, before former transport minister Mark Bailey announced $7.4 million in 2018 to advance the road project with a detailed business case.