Mine Subsidence Compensation Claims in NSW:  Quick Guide

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Mine Subsidence Compensation Claims in NSW:  Quick Guide

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If your property has suffered damage due to mine subsidence, you may be entitled to compensation under the NSW mine subsidence compensation scheme. The process is designed to be transparent, fair, and accessible, but it can be complex. Below, we summarise the key steps and what to do if you disagree with the outcome set out in the Guideline - Process for Claiming Mine Subsidence Compensation (the Guide). 

1. How is a Claim Made? 

  • Who Can Claim: (paragraph 5.2.2 of Guide)

Only property owners or their authorised representatives (with a Statutory Declaration or Power of Attorney) can lodge claims. Tenants cannot claim compensation, but can report urgent safety issues. 

  • How to Claim: Claims are lodged via the Subsidence Advisory NSW (SA NSW) online portal. If you cannot access the portal, you can submit a hardcopy form at a SA NSW office. 
  • Time Limits: (Section 11 of the Coal Mine Subsidence Compensation Act 2017 No. 37 (the Act))

Claims must be lodged within 12 months of the damage becoming known. Extensions may be granted in exceptional circumstances. 

2. What Happens Next? Preliminary Assessment (Section 6 of the Guide)

  • SA NSW reviews ownership, whether the damage could be due to mine subsidence, and if the property is within the zone of influence of active or non-active mines. 
  • If the claim is outside the mining area of influence, it will be closed within 14 days. 

3. What is a Claim Assessment? (Section 7 of the Guide)

  • Non-Active Mines: SA NSW manages the assessment, usually completed within 3 months of inspection. 
  • Active Mines: An independent specialist from a technical panel assesses the claim, also within 3 months unless subsidence is ongoing. 
  • Inspection: A qualified assessor inspects the property, typically within 4 weeks of claim lodgement or subsidence ceasing. 

4. Claim Evaluation Report (CER(Section 7.4 of the Guide)

  • The assessor prepares a CER detailing whether the damage is attributable to mine subsidence, the scope of repairs, and cost estimates. 
  • Draft reports are reviewed by SA NSW and/or the Mine Proprietor, with opportunities for comment and peer review. 

5. Determination and Offer (Section 8 of the Guide)

  • The “Determining Body” (SA NSW for non-active mines; Mine Proprietor for active mines) makes a determination based on the CER. 
  • Any offer of compensation is made, based on a “like for like” principle. (Section 13.2 of the Guide)
  • Alternatives to monetary compensation (such as project-managed repairs or property purchase) may be considered in some cases. (Section 14 of the Guide)

6. Settlement (Section 9 of the Guide)

  • If you accept the offer, you sign a Deed of Acknowledgement, Release and Indemnity, and provide bank details for payment. 
  • Compensation is paid within 21 days of the deed being executed. Staged payments may apply for major repairs or rebuilds.

7. If You Disagree: Dispute Resolution (Section 10 of the Guide)

  • If you do not agree with the determination or compensation amount, several avenues are available: 

a. Request Reassessment (Section 15 of the Act and paragraph 8.5 of the Guide):

  • You can request clarification or reassessment by the Determining Body at any time within 3 months of receiving the determination. 
  • The Determining Body must respond within 14 days. 

b. Independent Review by the Secretary (Section 10 of the Guide):

  • If disagreement persists, you may request an independent review by the Secretary of the Department of Finance, Services & Innovation within 3 months. 
  • Both parties submit position statements and supporting documents. 
  • The Secretary’s determination is binding and provided within 3 months. 

c. Appeal to the Land and Environment Court (Section 16 of the Act):

  • If you are dissatisfied with the Secretary’s decision, you may appeal to the Land and Environment Court within 3 months. 
  • Appeals can be made on grounds such as whether damage arose from subsidence, the amount of compensation, or rejection of preventative works. 

8. Eligible Compensation (Section 13 of the Guide):

  • Compensation may cover: 
  • Repairs to buildings and improvements (“like for like”) 
  • Damaged goods (fittings and fixtures)
  • Relocation and temporary accommodation expenses 
  • Utility connection/disconnection fees 
  • Legal expenses (up to $1,000 + GST for advice on the deed) 
  • Loss of rent for investment properties 
  • Other reasonable costs directly associated with the claim 

9. Key Timeframes (Section 12 of the Guide):

  • Claim lodgement: within 12 months of damage 
  • SA NSW response: within 14 days if claim is outside mining area 
  • Assessment and offer: within 3 months of inspection 
  • Claimant response: within 3 months of offer 
  • Secretary review: within 3 months of determination 
  • Appeal to the Land and Environment Court: within 3 months of Secretary’s decision 

What next? 

If you are considering making a Mine Subsidence claim or are in dispute over a determination, legal advice can help you navigate the process and protect your interests. Our firm is experienced in mine subsidence compensation matters and can assist at any stage, including dispute resolution and appeals.  

Request a copy of our NSW Mine Subsidence Compensation: Frequently Asked Questions by emailing Susan.Burgess@mullanelindsay.com.au

For further information, please contact David Collins in out Litigation Team to book an Initial Consultation. 

Key Timeframes for Mine Subsidence Compensation Claims in NSW

Summary Table

Action Timeframe 
Claim lodged after damage known Within 12 months 
SA NSW allocates Case Advisor Within 3 days of claim lodgement 
SA NSW advises claimant if claim is outside mining area Within 14 days of claim lodgement 
SA NSW notifies Mine Proprietor of claim Within 7 days of claim lodgement 
Mine Proprietor acknowledges claim/request info Within 7 days of notification 
Mine Proprietor requests review of claim zone decision Within 21 days of notification 
Technical Assessor inspects property Within 28 days of claim/subsidence end 
SA NSW provides notice of inspection At least 5 days prior 
Assessor provides draft Claim Evaluation Report (CER) Within 14 days of inspection 
SA NSW/Mine Proprietor comments on draft CER Within 7 days of receiving draft 
Assessor addresses comments Within 7 days of receiving comments 
Peer review of CER (if requested) Within 28 days of receiving draft 
Peer reviewer provides report Within 14 days of engagement 
Determining Body provides determination/offer to SA NSW Within 42 days of receiving info 
SA NSW forwards offer/refusal to claimant Within 3 days of receiving info 
Claimant accepts/refuses offer/determination Within 3 months of receiving letter 
SA NSW follows up if no response After 6 weeks, 3 months, and 4 months 
SA NSW forwards signed Deed/EFT form to Mine Proprietor Within 7 days of receipt 
Determining Body executes Deed Within 14 days of receipt 
Determining Body pays compensation Within 21 days of Deed execution 
Claimant requests Secretary review Within 3 months of determination 
SA NSW notifies Secretary/Determining Body of review request Within 7 days of request 
Claimant provides position statement for review Within 30 days of notification 
Determining Body provides position statement Within 14 days of claimant’s statement 
Secretary provides determination Within 90 days of notification 
Appeal to Land and Environment Court Within 3 months of Secretary’s decision 

For more information about building and construction, commercial litigation and equity disputes, contact David Collins in the Mullane Lindsay litigation team.

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