Project Delivery and Compulsory Acquisition Reforms

Project Delivery and Compulsory Acquisition Reforms: Key Changes for Landholders, Private Infrastructure and Mineral Resource Sectors

Recent reforms mean that if a private developer is undertaking a State Strategic Project and cannot reach agreement with a landowner to buy  land needed for the project, the developer can ask the State to compulsory acquire it.  The significance is that compulsory acquisition in Queensland has historically been associated with land required for public purposes like roads, rail and dams; whereas these new reforms allow privately owned land to be forcibly acquired by the State for certain private commercial developments.

Queensland has enacted significant reforms to the assessment and delivery of certain projects, including for critical minerals and major infrastructure projects. The State Development and Public Works Organisation (Critical Minerals) and Other Legislation Amendment Act 2026 (Qld) introduces a new suite of facilitation powers and modifies project pathways that are of interest to both landholders and project proponents.

The changes have attracted pushback from conservationist and landholder groups, with concerns that the reforms shortcut the assessment and community consultation for projects that have the potential to negatively impact areas of environmental and agricultural significance. Another concern is the increased potential for compulsory acquisition powers to be exercised by the State to make way for private projects.

Key Considerations for Stakeholders

• Landholders retain statutory protections relating to compensation, rectification of loss or damage, and procedural fairness, though land access and acquisition powers have been broadened for certain projects.
• Project proponents may experience a more streamlined pathway for applications that align with the State’s priorities, but should factor in statutory requirements for negotiation, consultation, and compliance with modified regulatory processes. However, potential benefits should be weighed up against risk of reputational damage and delays arising from community mistrust. Early stakeholder engagement should be prioritised, to mitigate risk and address concerns flagged by the community – this is particularly important for proponents wanting to maintain social licence.

It is recommended that parties likely to be affected by these reforms seek independent advice regarding their implications for ongoing or proposed developments, land interests, or approvals strategies.

Introduction of State Strategic Projects

The amendments enable the Minister for State Development to designate certain initiatives as “State strategic projects”. This designation provides:

• Expanded land access and acquisition mechanisms; and
• A process for more direct and expedited assessment for qualifying projects.

What are State strategic projects?

There is no list of projects that make the cut – there are only explicit exclusions, including most renewable energy and data centre projects – instead, projects may be declared as State strategic projects, subject to meeting a requisite threshold of importance for economic, environmental or social reasons.

The focus in the lead up to the amendments was on the emerging critical mineral industry, however there was an indication that ecotourism projects might meet the eligibility criteria.

Ultimately, it is a matter for the State government (at any given time) to determine what projects or industries require the benefits awarded by the designation, and whether they meet the requisite level of strategic importance to the State. 

Changes to Project Designations

With the commencement of the reforms:

• The previous “critical infrastructure project” and “private infrastructure facility” categories are removed.
• Existing “critical infrastructure project” transition automatically to the new regime.
• All “private infrastructure facility” declarations automatically lapsed on commencement of the amendments.

Land Access and Compulsory Acquisition

Key amendments affecting landholders and proponents include:

• Proponents of “State strategic projects” may seek land access for investigations and minor enabling works earlier in the approval process, subject to negotiation and compensation safeguards.
• Proponents of “State strategic projects” may seek that the State exercise its compulsory acquisition powers, to resume land for these projects where the proponent and the landholder/interested parties have not reached agreement about the sale of the land. This is a significant shift in Queensland’s legislative regime – where historically, the power to compulsorily acquire land has typically been afforded to authorities carrying out a public / infrastructure project, these reforms open the door for privately owned land to be taken by the State on behalf of a proponent for a commercial project.
• Compulsory acquisition for “State strategic projects” may occur prior to the conclusion of the Environmental Impact Assessment process (a change from the previous regime for “Private infrastructure facilities”).

Modification Orders and Regulatory Pathways

• The reforms introduce “modification orders”, regulations that may be recommended by the Governor in Council to modify or exclude certain legislative provisions applying to “State strategic projects”. These orders are purportedly designed to reduce regulatory duplication and are subject to only a few limitations. 
• Modification orders may go so far as to restrict judicial or appeal rights, not for the project proponent, but for other entities such as community groups, neighbouring landholders/operators, who will only be left with the right to apply for judicial review of decisions made under modified Acts (limiting the review to matters of law, rather than merit).
• The power to make such orders is extraordinary – parliament itself acknowledged that it departs from fundamental legislative principles about delegating legislative powers. 
• In reality, it is not altogether clear how these powers will work. There are many questions yet to be answered about how far the power may be applied (e.g. for regulatory frameworks under other legislation), or the extent to which stakeholders or decision-makers will be engaged with prior to a “modification order” being recommended to the Governor in Council.

For more information on how these legislative changes may affect your interests, our Planning and Environment team is experienced in project development, land management, and compulsory acquisition frameworks. Enquire now to discuss your circumstances with our practice group leader, Cara Erskine.