In 2025, the High Court in Government of the Russian Federation v Commonwealth clarified the extent to which government can affect property interests. While most property in Sydney is held as freehold, some land is held under Crown lease for a fixed term. This case—concerning the Russian Embassy site in Canberra—demonstrates how government can terminate leasehold interests in the national interest or on security grounds. Julian and Renee at Flash Conveyancing use this decision to help clients assess Crown interests and avoid unexpected risks.
The dispute arose when the Commonwealth enacted legislation to terminate the Russian Federation’s long-standing lease near Parliament House, citing national security concerns. The Russian Federation challenged the law, arguing the Commonwealth lacked constitutional power to extinguish its leasehold interest.
The High Court ruled in favour of the Commonwealth, confirming that:
- Parliament can affect property rights: Laws may alter or extinguish property interests if made under a valid constitutional head of power (e.g. external affairs or national security).
- Leasehold vs freehold: Leasehold interests are statutory and contractual in nature and can be varied or terminated by legislation; freehold interests have stronger protection.
- Compensation required: Under section 51(xxxi) of the Constitution, the government must provide just terms (reasonable compensation) when acquiring property.
What this means for NSW property owners in 2026:
- Compulsory acquisition: Properties may be acquired for public projects such as Sydney Metro or the Western Sydney Aerotropolis.
- Crown lease risk: Leasehold properties may be varied or terminated by legislation—due diligence is essential before purchase.
- Pre-purchase checks matter: Zoning, easements, and acquisition proposals must be reviewed to avoid future disruption.
Flash Conveyancing focuses on key risk checks:
- Section 10.7 Certificates: Identify planned government works affecting the property.
- Title searches: Reveal easements, covenants, and third-party rights.
- Acquisition notices: Government gazettes and planning documents may flag future compulsory acquisition.
Flash Conveyancing Advice:
Always confirm whether a property is subject to a Crown lease or affected by potential public works. Understanding these risks before signing a contract is critical.
Flash Conveyancing, led by Julian & Renee, specialise in property transactions across New South Wales. With strong experience across councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they deliver a personalised and secure settlement process. Whether you’re buying or selling in Acacia Gardens, Blacktown, Kellyville Ridge, Schofields, The Ponds, Castle Hill, Rouse Hill, or across Greater Western Sydney, your transaction is handled clearly, efficiently, and with confidence.
