THE lives of 153 landholders west of Melbourne are on hold due to Victorian Government plans to turn their land into a 15,000ha native grasslands reserve.
Mount Cottrell landholder John Morton and his two daughters face losing their three homes and 280ha property, which has been in the family for 90 years.
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Other smaller landholders say they have been told they cannot build or even cultivate their land following the Government's decision to impose a land acquisition overlay across the region, including 31 homes.
Mr Morton's neighbour Anthony Melissari said the 80ha he owned in partnership with his cousin was now a "dead asset", despite containing 1000 olive trees.
"Now we're not allowed to plant any more trees or even dig the ground up," Mr Melissari said.
Landholders said the Government intended to buy their land at rural land rates, but pay nothing for the native grasslands on the properties.
Yet before the imposition of the acquisition overlay last month landholders were free to fence, manage and protect remnant native grasses on their land, which they could then sell to developers as offsets against clearing of other native grasslands for housing.
The Department of Sustainability and Environment website shows that under its Bush Broker program, developers have paid an average $180,000 a habitat hectare for the native grassland offsets around Melbourne's fringe and up to $253,000 a habitat hectare.
A briefing document sent to landholders states DSE is already collecting money from developers to offset urban land clearing, which will then be used to buy the 15,000ha on the Werribee and Mount Cottrell properties.
"This will enable developers to fulfil their offset obligations by paying money to DSE prior to the grassland reserves acquisition process actually commencing," the DSE document states.
"DSE will use the money to purchase the requisite offset within the Western Grassland Reserves once the acquisition process commences."
Mount Cottrell landholder and olive grower Dominique Morizzi said she and other landowners were losing their land so the Victorian Government could acquire native vegetation credits to on-sell to property developers.
A DSE spokesman said properties compulsorily acquired by the Government would be valued by the Valuer-General based on the "highest and best permitted use" of the land.
