FAQs

The State Government’s objectives of the PHVBS are to:

1. Support a cap on, and reduction of, the permanent residential population of the affected areas of the West End;
2. Assist in the relocation of sensitive land uses that are proposed to be prohibited in the affected area of the West End; and
3. Provide for the West-End redevelopment and other consequential development.

The PHVBS is funded by industry.

The State Government’s current position is that participation in the Port Hedland Voluntary Buy-Back Scheme (PHVBS) is voluntary.

The PHVBS is proposed to provide options to eligible property owners in the West End whose land is subject to the Port Hedland West End Improvement Scheme No 1 (IS1) rezoning. Participation is voluntary.

Pilbara Ports has established Hedland Maritime Initiative Pty Ltd (HMI), a wholly owned subsidiary company that:

• Undertakes the role of the PHVBS Administrator; and
• Contributes to the planning, development, and activation of land it purchases in the West End; and
• Contributes to the planning, development, and activation of other areas and developments outside of the West End, as deemed necessary. This will be in collaboration with the PHVBS Steering Committee.

The PHVBS was proposed by the Minister for Regional Development, in consideration of requests from local community members to assist to address the potential impact on local residential property values caused by Port Hedland West End Improvement Scheme No 1(IS1).

Owners can elect to sell their property on the open market at any time if they choose to do so. The sale of a property is subject to factors such as rezoning under the Port Hedland West End Improvement Scheme No 1. (IS1).

The PHVBS is administered by Hedland Maritime Initiative Pty Ltd (HMI), a wholly owned subsidiary of Pilbara Ports. HMI’s governance is overseen by a Board of Directors.

The area has been zoned “West End” under the Port Hedland West End Improvement Scheme No.1 (IS1).

Consultation occurred between October and December 2019.

The Port Hedland Voluntary Buy-Back Scheme (PHVBS) consultation included five public engagement sessions, three in Port Hedland and two in Perth. Each session was accompanied by offers for one-to-one consultation appointments.

Independent consultant, Ross Love, was appointed to lead public consultation and advise on options for a proposed industry-funded voluntary buy-back scheme in the West End of Port Hedland.

The report is the cabinet minute for the Port Hedland Voluntary Buy-Back Scheme (PHVBS) and is therefore subject to cabinet confidentiality and not available.

The Government’s announcement of the Port Hedland Voluntary Buy-Back Scheme (PHVBS) was based on a number of factors, including feedback from the community and the recommendations of Mr Love, the Government’s independent consultant who recommended the PHVBS.

Port Hedland West End Improvement Scheme No 1 (IS1) is the planning response to the State Government’s Dust Taskforce Recommendations. The PHVBS is the State Government facilitating a request from local community members to assist to address the potential impact on local residential property values caused by Port Hedland West End Improvement Scheme No 1 (IS1).

The PHVBS is open until 31 December 2025.

Eligible owners are required to have a signed offer and acceptance contract with HMI by 31 December 2025 to sell their property via the PHVBS.

Hedland Maritime Initiative acquired the first properties that elected to participate in the PHVBS from June 2021.

Property sales commenced in 2021, with the first properties settling in June 2021.

Hedland Maritime Initiative provides general updates on the level of interest in the PHVBS publicly and more specific information to affected property owners surrounding HMI acquired properties and / or potential redevelopments of the West End as the PHVBS progresses.

HMI e-newsletters provide updates on the Port Hedland Voluntary Buy-Back Scheme – subscribe on the website www.hedlandmaritime.com.au

The PHVBS was in response to zoning changes that make existing permanent residential uses non-conforming under Port Hedland West End Improvement Scheme No 1 (IS1). The zoning changes do not impact commercial or industrial property zonings.
As part of the extension to the PHVBS announced in October 2023, a small number of non-residential properties are also now able to participate. This applies to non-residential properties that are situated in strata complexes where HMI has already acquired residential properties.

Participation in the PHVBS is voluntary.

The PHVBS defines eligible properties as those with Town of Port Hedland approved single houses, grouped dwellings, and multi dwellings, on their own lot or zoned residential under a previous local planning scheme within the area between Taplin Street and the port in the area subject to Port Hedland West End Improvement Scheme 1. The PHVBS does not apply to residential properties in the area owned by the State Government or industry contributing to the funding of the PHVBS. As part of the extension to the PHVBS announced in October 2023, a small number of non-residential properties are also now able to participate. This applies to non-residential properties that are situated in strata complexes where HMI has already acquired residential properties.

The PHVBS only applies to properties within the area of land between Taplin Street and the port in the West End of Port Hedland.

The owners of:

• 404 residential properties; and
• 22 non-residential properties, are estimated to be eligible for the Port Hedland Voluntary Buy-Back Scheme (PHVBS).

The PHVBS applies to the area of land between Taplin Street and the port in the West End of Port Hedland.

The PHVBS is designed to address the potential impact on local residential property values caused by Port Hedland West End Improvement Scheme No 1 (IS1). It is not designed to provide compensation for changes in market value that have occurred over time.

Options for property owners include:

• If you are an owner occupier, continue to own and reside in the dwelling;
• If you are an investor, continue to own and rent out your property;
• If you are an investor or owner occupier, retain the land, with a view to future non-permanent residential development options as part of the West End redevelopment ;
• Or accept the PHVBS offer and secure a cash settlement price.

Approximately two thirds of the eligible PHVBS properties are estimated to be owned by property investors and one third are estimated to be owned by owner occupiers.

The rent will be payable to Hedland Maritime Initiative following the settlement of the sale of the property. HMI will follow all the processes required by law to ensure the tenant is notified of ongoing arrangements.

Hedland Maritime Initiative will honour any bona-fide lease that has been entered into and is in force with a bona-fide tenant at the time of the offer.

Hedland Maritime Initiative will honour any bona-fide lease that has been entered, including the rent payable and any provisions in the lease for the variation of the rent. HMI will follow all the processes required by law to ensure the tenant is notified of ongoing arrangements.

This will be an individual arrangement, as everyone’s circumstances are different. However, Hedland Maritime Initiative will honour any bona-fide lease that has been entered into and is in force with a bona-fide tenant at the time of the offer.

Should an existing bona-fide lease be in place at the time of sale, and that lease includes a lessor obligation to provide a furnished property, then the property owner has the following options:

• The seller may choose to sell Hedland Maritime Initiative the furniture at the written down value; or
• Leave the furniture in place and transfer ownership to Hedland Maritime Initiative at a minimal cost.

In both instances, the cost of Hedland Maritime Initiative acquiring the furniture will be reimbursed to the seller as part of the up to $20,000 (inclusive of GST) verifiable transaction costs.

Any such request will be discussed with owners on a case-by-case basis. If you need time to relocate to another location in Port Hedland, Hedland Maritime Initiative could accommodate an extended stay in the property being sold by one of the following means:

• A delayed settlement; or
• A lease back arrangement.

This will be discussed with each owner who is considering participation in the Port Hedland Voluntary Buy-Back Scheme (PHVBS) and wanting to enter a lease back of the property.

Any bona-fide lease agreements will be honoured by Hedland Maritime Initiative if you want to sell the property before the lease comes to an end. Should you wish to enter a new lease before deciding to sell to HMI, that is a matter for you to decide.

Every owner’s situation is different, and owners should fully inform themselves and seek independent advice as to what their best option is, given their individual circumstances.

Eligible owners are encouraged to seek their own financial advice (including banks and financiers) before deciding whether to participate or not participate in the PHVBS.

If you are an owner of eligible property, you should review the information released by the WA Planning Commission regarding the changes to the land use under the Port Hedland West End Improvement Scheme No. 1 (IS1).

Participation in the PHVBS is voluntary and owners should inform themselves of the opportunities and risks in participating. The Hedland Maritime Initiative will provide eligible property owners with information to assist them in making an informed choice about whether to participate in the PHVBS or not. The objective of the PHVBS is to provide residential property owners with the opportunity to sell their property for a guaranteed settlement price if they are concerned around the potential impact on property values caused by changes in the land use zoning. Property owners should form their own view of that.

The eligible owners will have the option to use the Port Hedland Voluntary Buy-Back Scheme (PHVBS) offer towards the purchase of another property. Hedland Maritime Initiative is working with the PHVBS Steering Committee to identify residential land and built form options outside of the West End. When details of these options are available, they will be shared with the interested eligible property owners. The PHVBS offer can also be used to offset the price of another existing property outside of the West End.

At the time the offer is made, eligible residential property owners will be offered a settlement price calculated as follows:

• the agreed market value of the property as at August 6, 2019 (indexed);
• a premium of 35 per cent of the agreed market value; and
• an amount of up to $20,000 (inclusive of GST) for verifiable transaction costs. The terms for calculating the offer price are set by Government.

Timeframes will depend on individual circumstances and will be discussed with individual owners.

Offers will be made to owners, subject to:

1. The eligible owners having completed the Expression of Interest (EoI) process; and
2. The valuation process being completed and the Hedland Maritime Initiative receiving the final valuation reports.

Settlement of properties will usually occur 28 days from the date the offer and acceptance contract is signed. Longer settlement dates can be negotiated.

Participation in the PHVBS is voluntary and eligible residential property owners will need to consider their own circumstances and seek any advice they consider necessary when considering whether to participate in the PHVBS. The terms of the PHVBS offer were set by Government, this includes the date of valuation, indexation and the 35 per cent premium.

Hedland Maritime Initiative Pty Ltd will become the legal owner of the property.

“Indexed” means the base valuation will be updated by reference to the percentage change in land valuations in other comparable areas, such as the East End of Port Hedland, up to a maximum of four per cent per year for the life of the Port Hedland Voluntary Buy-Back Scheme (PHVBS). Indexation will be applied pro-rated at up to 2% on the 6 February each year, and up to 4% on the 6 August each year for the duration of the PHVBS. The maximum indexation is capped at 4% in any full year.

Depending on the market movement in surrounding areas, for eligible property owners indexation may result in an up 2 % increase to the offer in February reviews, and an up to 4 % increase to the offer in August reviews; or remain the same (noting this will be the result of a zero indexation); or decrease by whatever the percentage market decline change is.
For eligible property owners wishing to sell at their current offer price (with prior indexation), they will need to have accepted their current offer prior to next date for indexation (i.e. before the 6 February or 6 August indexation dates).

Verifiable transaction costs include settlement fees, selling fees, stamp duty, and other verifiable costs up to $20,000 (inclusive of GST), associated with the sale of the PHVBS eligible property and the purchase of a new residential replacement property.

Sellers may choose to:

• claim nominated agent fees at the time of settlement by completion and submitting section 3 on the Hedland Maritime Initiative verifiable transaction cost reimbursement form a minimum of 5 days prior the anticipated settlement date; or
• claim the verifiable transaction costs post settlement by completing and submitting section 4 on the Hedland Maritime Initiative verifiable transaction cost reimbursement form and the seller’s personal details form. All claims for reimbursement of verifiable transaction costs will need to be submitted with supporting evidence of the expenditure. Claims made post settlement are to be made within 60 days of the settlement of the PHVBS eligible property unless prior written agreement is provided by HMI.

This is your option, however, is not necessary, as the PHVBS offer will be made on the terms set by the Government and therefore is not subject to negotiation.

Yes, owners that purchased eligible properties in the Port Hedland Voluntary Buy-Back Scheme (PHVBS) area after 6 August 2019 will be eligible for the premium of 35 per cent of the agreed market value for the property at August 6, 2019 (indexed).

The agreed market value will be determined by two licenced valuers - one selected by Hedland Maritime Initiative and one selected by the property owner.
Additional details on the valuation panels and scope of services are included in the Expression of Interest package that is issued to eligible PHVBS property owners.
Where these valuations are within 10 per cent of one another, the higher value will apply to the offer prices as the base market value at 6 August 2019.
Where the difference is greater than 10 per cent, the final market value will be determined by an independent valuer appointed by Hedland Maritime Initiative.

Property values will be determined as at 6 August 2019.

Eligible property owners have two options. They can either select a valuer from a panel of valuers that has been established by Hedland Maritime Initiative or they can obtain a valuation from another valuer (not on the established panels), subject to Hedland Maritime Initiative’s prior consent, which will be given if that valuer:

• has current Certified Practicing Valuer (CPV) accreditation with the Australian Property Institute (or the equivalent membership with a recognised industry body);
• is licensed to practice as a valuer in Western Australia under the Land Valuers Licensing Act;
• declares that they have no actual or perceived conflict of interest in performing an impartial and unbiased property valuation on the property; and
• undertakes the valuation in accordance with the scope set by Hedland Maritime Initiative.

In both cases, Hedland Maritime Initiative will pay for the valuation fee.

The 6 August 2019 was when the then Minister for Regional Development first publicly indicated that the State Government would consider how an industry funded Port Hedland Voluntary Buy-Back Scheme (PHVBS) could operate. The 6 August 2019 date for valuation was accepted after investigations found that there was no other date that would distinguish the West End from other local areas (i.e. East End of Port Hedland and other Pilbara locations).

Hedland Maritime Initiative will need to have valuations conducted on all properties being acquired under the PHVBS. This is to ensure that the valuation instructions are the same for all eligible PHVBS properties and that any property improvements since August 2019 are taken into consideration.

An outline of the valuation scope and process is contained in the PHVBS Expression of Interest package that will be issued to owners following receipt of their contact details and interest in progressing to this stage of the PHVBS process. The instructions provided to the valuers are consistent with the PHVBS terms set by Government.

This is outlined in the Port Hedland Voluntary Buy-Back Scheme (PHVBS) Expression of Interest package.

The property owner and / or managing agent details and access arrangements advice is provided to the valuers, who will then make contact to arrange access.

The terms of the Port Hedland Voluntary Buy-Back Scheme (PHVBS) offer were set by Government, this includes the date of valuation, indexation and the 35 per cent premium. Participation in the PHVBS is voluntary and eligible property owners will need to consider their own circumstances and seek any advice they consider necessary when considering whether to participate in the PHVBS.

The gazettal of Port Hedland West End Improvement Scheme No.1 (IS1) does not impact on the ability of a landowner to continue to rent out their property. If a landowner requires more detail on matters relating to Port Hedland West End Improvement Scheme No 1 (IS1), they should contact the Department of Planning Lands and Heritage.

Any future use of residential properties acquired by Hedland Maritime Initiative will be in accordance with the Port Hedland West End Improvement Scheme No 1 (IS1). The intention is to redevelop the Port Hedland West End Improvement Scheme No 1 (IS1) area.

The property valuation will be determined at the 6 August 2019 date, but include consideration for any improvements made to the property since 6 August 2019 as identified at the date of inspection. Property owners will need to make their own decision and seek advice necessary to determine the best option in their particular circumstance.

While it should be noted that the key features of the offer to be made under the PHVBS have been decided on by Government, if you are concerned about an aspect of the PHVBS please advise us accordingly via phvbs@hedlandmaritime.com.au.