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What is the Strategic Benefit Payments Scheme?

The NSW Government is committed to creating an electricity system that is affordable, clean and reliable, under our plan – the Electricity Infrastructure Roadmap. Landholders who host transmission infrastructure play an essential role in this energy transition.  

The Strategic Benefit Payments (SBP) Scheme ensures eligible landholders share in the benefits of this significant economic investment. Payments are made annually over a 20-year period in accordance with the Strategic Benefit Payment Guidelines (SBP Guidelines).  

These payments are made in addition to and will not reduce any compensation paid to landholders for transmission easements as required under the Land Acquisition (Just Terms Compensation) Act 1991

Transmission lines through Farmland in Tamworth
To receive strategic benefit payments, you must be:

  • a private landholder
  • hosting a permanent easement on your property, for eligible infrastructure.

You may be eligible for strategic benefit payments if you:

  • own the land
  • have a perpetual lease
  • hold a native title
  • hold Aboriginal land right.

Public authorities are not eligible. However, Local Aboriginal Land Councils and Registered Native Title Bodies Corporate are eligible as they are not considered public authorities.

Eligible infrastructure

Appendix A of the SBP Guidelines lists all eligible transmission projects and infrastructure. The Minister for Energy may update this list from time to time. 

Eligible projects may include: 

  • renewable energy zone network infrastructure projects
  • priority transmission infrastructure projects
  • other transmission infrastructure projects identified in the Australian Energy Market Operator’s Integrated System Plan. 

The eligible infrastructure declared to date includes high-voltage transmission lines from new major transmission projects, including:

Two land managers working

Payments

Strategic benefit payments are made by network operators. 

Eligible landholders under the SBP Scheme will receive the equivalent of $200,000 in 2022 dollars, per kilometre of eligible transmission infrastructure hosted on their property. Payments are paid in annual instalments over 20 years, adjusted annually for inflation using the Consumer Price Index. 

The first payment will be paid within 90 days after the eligible infrastructure is energised. 

Subsequent payments are paid by 30 September each year. 

Calculation method 

Payments are calculated based on the length of the approximate centreline of the transmission line. 

If the centreline does not traverse your property, payments are calculated by the length of the edge of the permanent easement. 

If you host two sets of transmission lines, you'll receive payments for each line. 

Payment calculation types

The first and last payments are prorated to the number of eligible days in the financial year. 

If the transmission line on your property is less than 100 metres long, it will be rounded up to 100 metres when calculating your payment. 

Late payments by network operators accrue interest compounded daily at an annual rate of 4% plus the most recent cash rate. 

If you own the property with others as tenants in common, each owner receives a payment based on their ownership share. 

If you own the property as joint tenants, you'll receive one payment jointly. 

What you should do if eligible

If you are an eligible landholder, the network operator will provide you with a Payment Direction form to complete and submit each year. 

To receive payment, you should: 

  • submit a Payment Direction each year, following the instructions on the form 
  • keep your contact information up to date with the network operator 
  • notify the network operator of any changes that might affect your eligibility (such as selling your property). 
If you sell or transfer your property

Payments are made to the current landowner of the property. Within the 20-year period: 

  • If you sell or transfer your property to another private entity, the new owner will receive the remaining payments 
  • if the land is transferred to a public entity, payments will stop. 
New native title determination or Aboriginal land grant

Native title holders and holders of Aboriginal land rights are eligible for strategic benefit payments. 

If a native title is determined after energisation: 

  • you will become eligible when the relevant native title determination is made 
  • the first payment will be backdated to the energisation date 
  • the first payment will include amounts for each of the years between this date and the date of payment. 

If an Aboriginal land rights claim is granted after energisation: 

  • you will become eligible when the Aboriginal land rights claim is granted 
  • the first payment will be backdated to the date of ownership transfer 
  • the first payment will include amounts for each of the years between this date and the date of payment. 

The first payment will be made by 30 September of the financial year after:  

  • you become eligible, or 
  • the Australian Energy Regulator determines an application of revenue adjustments made by a network operator; this process supports the operator to arrange funds for back payments.  

Subsequent annual instalments (if applicable) are paid by 30 September of each eligible financial year. 

Licence conditions and Strategic Benefit Payment Guidelines for network operators

The Strategic Benefit Payments Scheme is given effect through a licence condition imposed by the Minister for Energy on holders of a network operator’s licence under clause 6(2)(i) of Schedule 2 of the Electricity Supply Act 1995. This condition requires licence holders to make payments to eligible landholders and comply with other requirements of the SBP Guidelines. 

The SBP Guidelines set out the detailed requirements of the Strategic Benefit Payments Scheme, including  

  • eligibility of landholders and infrastructure
  • payment calculations
  • reporting and complaints resolution.  

The SBP Guidelines were published in the Gazette on 20 June 2025 and are effective from 1 July 2025.

Help and support

Transgrid
ACEREZ

Website: acerez.com.au

Translating and Interpreting Service

The Translating and Interpreting Service provides interpreting services over the phone for people who speak languages other than English. 

Website: tisnational.gov.au
Phone: 131 450 

Feedback and complaints

If you have a complaint about the administration of the Scheme:

1. Contact the network operator 

The SBP Guidelines require network operators to have a formal complaint handling policy and they must follow it to resolve your issue. 

2. If you’re not satisfied with their response 

You can lodge a complaint with the Energy & Water Ombudsman NSW. The Ombudsman will: 

  • work with you toward a solution
  • direct you to other organisations if they're better suited to handle your issue
  • offer special support for First Nations communities. 

Energy & Water Ombudsman NSW (EWON) 

Website: ewon.com.au 
Phone: 1800 246 545 
Mail: Reply Paid 86550, Sydney South NSW 1234. 

Get in touch with EnergyCo

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1800 118 894 (9am to 5pm, Monday to Friday) 

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