Adverse Possession in Australia: 2025 Guide for Property Owners

Adverse possession—a legal concept that lets someone acquire ownership of land they don’t hold title to—remains one of the more misunderstood corners of Australian property law. Yet, with changes to state legislation in 2025 and a renewed focus on urban land management, adverse possession has re-emerged as a topic property owners, investors, and even tenants can’t afford to ignore. Let’s unpack what’s new, how the rules work, and real-world scenarios where adverse possession is shaping outcomes in Australian property markets.

What Is Adverse Possession—and Why Does It Matter?

Adverse possession is sometimes called “squatters’ rights,” but it’s much more complex than simply occupying unused land. In Australia, adverse possession allows a person who has occupied land for a set period—usually without the consent or knowledge of the legal owner—to claim legal ownership, provided they meet strict requirements under state law.

• Continuous and exclusive possession: The occupier must treat the land as their own, often for at least 12–15 years (varies by state).
• Open and obvious use: Occupation must be visible and not hidden from the true owner.
• Without permission: The possession must be ‘adverse’—not with the owner’s consent or lease.

This doctrine was designed to prevent land from lying idle and to encourage its productive use. But in practice, it can lead to bitter disputes—especially in fast-growing cities where land values are soaring.

Key Legislative Updates in 2025

This year, several Australian states have reviewed or amended their adverse possession laws, aiming for greater clarity and to address modern issues such as urban infill, community gardens, and unregistered easements.

• Victoria: The state government has introduced a digital lodgement process for adverse possession claims, speeding up timelines and adding transparency. Notably, the minimum occupation period remains at 15 years, but claimants must now provide evidence of land tax payments and any improvements made to the property.
• New South Wales: The Real Property Amendment (Adverse Possession) Bill 2025 has clarified that government-owned and community lands are exempt from adverse possession claims. There’s also an expanded requirement for notifying adjoining landowners and publishing public notices.
• Queensland: The Land Title Act review has led to a new requirement: claimants must demonstrate active use of the land, not just passive occupation. This targets cases where overgrown or neglected boundaries were previously enough to support a claim.

Across the board, the 2025 changes emphasise transparency, public notification, and a higher burden of proof for claimants—making it harder for opportunistic claims to succeed, but still protecting the principle for genuine long-term occupiers.

Real-World Scenarios: Who’s at Risk and Who Can Benefit?

The practical impact of adverse possession varies widely. Here are a few Australian case studies that illustrate the stakes:

• Suburban boundary disputes: In Melbourne’s inner north, a homeowner discovered that their neighbour’s fence had crept a metre over the legal boundary—decades earlier. Because the neighbour had maintained the strip as their own for over 15 years, and the original owner had never objected, an adverse possession claim succeeded in 2024, setting up a wave of similar reviews in the area.
• Vacant land in regional towns: In parts of regional Queensland, absentee landowners have lost parcels to local residents who fenced, gardened, and paid rates on the land for over a decade. The 2025 law now requires more active evidence of use, such as building or farming activity, to support these claims.
• Urban renewal projects: City councils have tightened controls to prevent community gardens or informal car parks on public land from being claimed through adverse possession. New notification and exemption rules mean councils can intervene more quickly if land is being occupied without approval.

For property investors and owners, this means regular boundary checks, keeping up-to-date records, and responding promptly to encroachments is more important than ever. Meanwhile, long-term occupiers with genuine ties to land may still have a legitimate pathway to ownership—but will face stricter scrutiny and documentation requirements.

Protecting Your Property (or Claiming It)

Whether you’re a homeowner, investor, or someone who believes they have a claim, the 2025 rules make a few things clear:

• Check your title boundaries against physical fences and structures regularly.
• Respond in writing to any encroachments or disputes—don’t let small issues linger for years.
• If you’re considering an adverse possession claim, gather evidence: photos, rates notices, tax records, and proof of exclusive, continuous use.
• Stay across state-specific changes—each jurisdiction has its own rules and timeframes.

Adverse possession isn’t a loophole for the unscrupulous, but a safeguard for those who’ve genuinely invested in and cared for neglected land. The new laws aim to balance these interests more transparently than ever before.