Easement Payments Overview

Our transmission lines are located on easements across public and private land throughout NSW and the ACT.

An easement is a property right that is registered on title and allows Transgrid to construct, operate, and access its transmission line infrastructure.

Private landowners* are compensated for hosting the easement in accordance with the NSW Government’s Land Acquisition (Just Terms Compensation) Act 1991 (Just Terms Act). Transgrid has also adopted the property acquisition standards and principles set out by the Centre for Property Acquisition.

We have developed this landowner compensation guide to help you understand Transgrid’s process for acquiring easements and how compensation is calculated and paid.

*For the purposes of this web page the term landowner(s) and landholder(s) are interchangeable. 

Strategic Benefits Payments

The NSW Government finalised its Strategic Benefits Payments Scheme (SBP) for eligible landowners following the approval to its SBP Guidelines, which are in effect from 1 July 2025. Under the SBP scheme, private landowners hosting new high voltage transmission projects critical to the energy transformation and future of the electricity grid will be paid $200,000 per kilometre of transmission line hosted, adjusted for inflation using the Consumer Price Index (CPI), paid in annual instalments over 20 years. 

The SPB is not eligible for landowners that are Public Authorities.

The SBP is an additional payment to any compensation paid under the Land Acquisition (Just Terms Compensation Act, 1991). The SBP scheme will apply to landowners hosting new transmission projects that are required for the energy transformation under the Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP) and the NSW Government’s Electricity Infrastructure Roadmap.

These payments acknowledge the vital role landowners play in supporting a modern electricity grid for NSW.

More information about the scheme is available from EnergyCo.

We have also developed Frequent Asked Questions to help landowners understand how the scheme benefits them.

Applicable Transmission Projects

The SBP Scheme applies to all new major transmission projects that are critical to the energy transformation and the future of the energy grid. Projects that meet this definition include priority transmission infrastructure projects, Renewable Energy Zone network infrastructure projects and transmission infrastructure projects identified in the AEMO’s ISP that are commissioned after the date of implementation of the SBP Scheme.

Examples of eligible projects that are underway or in early planning and development include EnergyConnect, HumeLink, and VNI West, Hunter Transmission Project, the New England Transmission Project, the Central-West Orana REZ Transmission Project, and the Mt Piper to Wallerawang Transmission Line Project. For eligible projects, SBP is required for:

  • new high voltage transmission lines

  • increasing the voltage of existing lines that involves significant new works such as increasing the width of easements to accommodate additional towers.

The SBP Guidelines do not allow SBP to apply for:

  • new substations

  • rebuilding existing transmission lines that do not involve significant new works, such as replacing existing towers

  • augmentations or upgrades to the existing transmission network, including existing substations

  • new transmission and distribution lines less than 220kV and any associated works

  • existing transmission and distribution lines.

For eligible projects and works, payments are based on the length of the line required for a single set of transmission towers for the transmission infrastructure. If the transmission project requires two sets of towers (and subsequently two lines or parallel lines), the landowner will receive a SBP for each set of towers/lines for the project (that is, two payments). There is no difference in payment for different voltages or different tower designs.

Strategic Benefit Payment Guidelines

Transgrid as a ‘Licence Holder’ must administer the SBP in accordance with the NSW Government’s Strategic Benefit Payment Guidelines (the Guidelines). Transgrid must make SBPs and comply with the Guidelines as a condition of its Licence. Some of the requirements of the Guidelines include the below.

Project Easement Register

Transgrid must publish a ‘Project Easement Register’ for each of its eligible projects. The registers must be completed at least 90 days before the energisation date and be updated as required to ensure the information is accurate. A link to the register will be made available soon.

Information for eligible landowners

In accordance with Clause 19 of the Guidelines, Transgrid must prepare and publish, and keep up to date and accurate, information about SBPs.

The information which will be published includes:

  • information about how to contact the Licence Holder to submit enquiries about SBPs and typical response times

  • information to identify the Licence Holder’s Eligible Projects

  • the current Project Easement Register for each of the Licence Holder’s Eligible Projects

  • information about the Licence Holder’s procedures for identifying Eligible Owners and obtaining valid Payment Directions

  • the Licence Holder’s privacy policy relating to Landholder Information; and

  • the Complaints Handling Policy of the Licence Holder.

Payment process

Transgrid will employ a staged approach to identify and pay eligible landholders which involves:

  1. Ownership verification: using the current Certificate of Title and Transgrid systems, affected landholders will be identified and evaluated for eligibility based on the SBP guidelines.

  2. Payment direction: verified landholders will be contacted to provide a signed payment direction form which includes payment information and enables payments to be made

  3. Verbal confirmation: initial payments and the updating of any payment direction details will require verbal confirmation from verified landholders.

Contact us

Landholders with enquiries about SBPs can contact Transgrid by emailing sbpayments@transgrid.com.au. Your enquiry will be acknowledged within 2 business and responded to within 10 business days.

Feedback and complaints

If a complaint or dispute cannot be resolved, eligible landholders can contact the Energy & Water Ombudsman NSW (EWON) who has a list of dispute resolution services. More information can be found on the EWON website at https://www.ewon.com.au/.

Frequently Asked Questions

What is the SBP Scheme?

The Strategic Benefit Payments Scheme is a payment of $200,000 per kilometre of transmission hosted for new major transmission projects critical to the energy transformation and future of the electricity grid, paid out in annual instalments over 20 years, beginning once the relevant project is energised (i.e operational). This means that each year, a landowner hosting one kilometre of transmission line would be paid $10,000, by Transgrid every year for 20 years once the line is switched on. The payment is adjusted each year for inflation, based on the Consumer Price Index.

The SBP Scheme is separate to compensation for the acquisition of easements for new transmission projects, which will still be governed by the Land Acquisition (Just Terms Compensation) Act 1991.

The new line has been energised and I am eligible to receive SBP payment, what happens next?

We will contact you by email, letter or phone with details on next steps. A follow-up phone call will be made to you to confirm you have received our correspondence and answer any questions you may have about your payment. After this, we will take steps to begin the payment cycle.

Why are these payments being introduced?

These payments are an acknowledgement of the important role private landowners play in supporting the transition to a low-emissions electricity system. New transmission infrastructure is critical to connecting renewable energy sources to where they are needed the most across NSW. The SBP Scheme will ensure that landowners who host these new vital major transmission projects receive tangible benefits for participating in building an energy grid that supports the future of all people in NSW.

Was Transgrid involved in developing the payment program?

Transgrid was a key industry stakeholder involved in NSW Government consultation on the proposed payment program and advocated in favour of a change to existing arrangements, which had previously inhibited our ability to make annual payments to landowners hosting new projects.

Who is eligible for these payments?

The SBP payment will only be paid to eligible landowners whose properties are hosting new major transmission projects critical to the energy transformation and future of the electricity grid. This includes transmission projects identified in the AEMO’s ISP such as HumeLink and Project Energy Connect, Renewable Energy Zone network infrastructure projects and priority transmission infrastructure projects under the NSW Government’s Electricity Infrastructure Roadmap.

This includes private individuals or corporate entities that own land in NSW. Private holders of a Western land lease granted under the Western Lands Act 1901 are also eligible to receive SBPs. A full list of Eligible Interests can be found in the Property Interests Table on page 37 of the Guidelines. SBPs are not applicable for holders of other minor interests on the title of the land (such as leases, licences or easements).

Public Authorities (i.e. land that is not owned by a private individual or company) are not eligible to receive SBP.

How do I apply?

Eligible landowners will not have to apply to the SBP Scheme. Work is underway to capture landowners affected by applicable Transgrid projects into a scheme register for Transgrid to identify and process SBP payments. We will also contact eligible landowners to explain their individual circumstances.

It is important that we have the correct contact details for landowners, please contact Transgrid via email sbpayments@transgrid.com.au or phone 1800 222 537 to ensure your details are up to date.

What projects trigger SBPs?

The SBP Scheme applies to all major transmission projects that are critical to the energy transformation and the future of the energy grid.  Projects that meet this definition include priority transmission infrastructure projects; Renewable Energy Zone network infrastructure projects and transmission infrastructure projects identified in the AEMO’s ISP that are energised after the date of implementation of the SBP Scheme. 

Examples of eligible projects that are underway or in early planning and development include current Transgrid projects EnergyConnect, HumeLink, and VNI West, and non Transgrid projects such as the Hunter Transmission Project, the New England Transmission Project and the Central-West Orana REZ Transmission Project.  For eligible projects, SBPs are required for:

  • New major transmission lines with a voltage of at least 330 kV

  • Increasing the voltage of existing lines that involves significant new works such as increasing the width of easements to accommodate additional towers.

SBPs does not apply for:

  • New substations

  • Rebuilding existing transmission lines that do not involve significant new works, such as replacing existing towers

  • Augmentations or upgrades to the existing transmission network, including existing substations

  • New transmission and distribution lines and any associated works with a voltage of less than 330kV

  • Existing transmission and distribution lines.

For eligible projects and works, payments are based on the length of the line required for a single set of transmission towers for the transmission infrastructure. If the transmission project requires two sets of towers (and subsequently two lines or parallel lines), the landowner will receive a SBP for each set of towers/lines for the project (that is, two payments). There is no difference in payment for different voltages or different tower designs.

Do these payments replace compensation agreed under the Just Terms Compensation Act (1991)?

No. These payments will be in addition to the compensation paid to landowners for transmission easements under the Land Acquisition (Just Terms Compensation) Act 1991.

When do the payments come into effect?

Payments will come into effect after construction of transmission infrastructure is complete and is energised. It is proposed that the first payment would be made no later than 90 days after energisation of the new transmission project. Subsequent years will be paid annually after that from 1 July of the Financial Year in which the SBP is to be made and by the 30 September of each year.

What if energisation occurred before the guidelines were published?

As set out in the guidelines, eligible project sections energised before the scheme started will receive payment within 90 days after 1 July 2025.

How has the rate of payment been determined?

The SBP payment was set by the NSW Government after examining the balance between the critical importance of ensuring the new transmission network is rolled out in a timely way, the costs of payments with the consumer benefits of timely and efficient delivery of new transmission infrastructure and ensuring that private landowners hosting the transmission infrastructure for these projects share directly in the benefits of the projects.

Why are the payments for a 20-year timeframe?

The 20-year period is generally consistent with the access rights that will be granted to renewable energy generation and storage projects to connect to the new transmission infrastructure in renewable energy zones under the NSW Roadmap and Electricity Infrastructure Investment Act 2020.

It is structured to ensure that the private landowners hosting new transmission infrastructure will receive a share of the benefits of the infrastructure, and that if the ownership of land changes over time, then the new landowner will continue to receive any future SBP payments.

If the land is sold or transferred to a public entity within the 20-year period, SBP payments would no longer be paid. 

Who will make the payments and how is the scheme being funded?

Payments will be made by network operators, including Transgrid. The cost of implementing the SBP Scheme will be included as part of the cost of delivering the new transmission infrastructure which is currently recovered from consumers. The implementation of the scheme will ensure that landowners, communities and consumers mutually benefit from the timely and efficient delivery of transmission infrastructure that supports the future security of the electricity network.

Does the payment apply to existing transmission assets? If not, why not?

The payments do not apply to existing transmission assets – rather they only apply to major new high voltage transmission projects proposed under the ISP or the NSW Roadmap that are critical to the energy transformation and future of the electricity grid. The Minister may include new major transmission projects or amend Appendix A of the guidelines at their discretion.

Are the payments registered on property title, or linked to the property in some way?

The payments are not registered or linked to the property title.The NSW Government has released the guidelines which provide for administrative arrangements to ensure that the SBP Scheme is being appropriately and effectively implemented by the Network Operator (Transgrid). The payments are in recognition of landholders hosting transmission line and therefore are a direct payment to the eligible landholders from network operators.

I am still negotiating compensation with Transgrid for an eligible project – what happens to me?

Transgrid will continue to seek negotiated compensation agreements in line with the Land Acquisition (Just Terms Compensation) Act 1991, and the SBP Scheme will be applied in addition to negotiated compensation.

I have already agreed compensation with Transgrid for a current eligible project – what happens to me?

The SBP Scheme will be applied independent of, and in addition to, negotiated compensation.

The rate is described as being per kilometre – how does it apply to parts of a kilometre?

The SBP payment will be pro-rated. For example, if a property has 1.5km of transmission lines, the annual payment will be approximately $15,000 for each year for 20 years plus adjustments each year based on the Consumer Price Index. If a transmission line length is shorter than 100 metres the relevant line length is taken to be 0.1 kilometres.

Are the payments subject to Capital Gains Tax, or any other tax?

Many factors can affect applicable tax, such as the ownership of a property and the operation of any business on the property. Each individual case will be different. We encourage landowners to seek independent tax advice about the treatment of the SBP Scheme.

How do I make sure my contact and bank details are correct?

Contact Transgrid via email sbpayments@transgrid.com.au or by phone 1800 222 537 to ensure your details are up to date.

Are neighbour payments included in this scheme?

No, neighbour payments have not been approved as part of the NSW Government scheme.