Extinguishment case
(1) If the act attributable to the Commonwealth is a category A past act or a category B past act, the native title holders are entitled to compensation for the act.
Non - extinguishment case
(2) If it is any other past act, the native title holders are entitled to compensation for the act if:
(a) the native title concerned is to some extent in relation to an onshore place and the act could not have been validly done on the assumption that the native title holders instead held ordinary title to:
(i) any land concerned; and
(ii) the land adjoining, or surrounding, any waters concerned; or
(b) the native title concerned is to some extent in relation to an offshore place; or
(c) the native title concerned relates either to land or to waters and the similar compensable interest test is satisfied in relation to the act.
Compensation for partial effect of act
(3) If the entitlement arises only because one, but not both, of paragraphs (2)(a) and (b) are satisfied, it is only an entitlement for the effect of the act on the native title in relation to the onshore place, or the offshore place, mentioned in the relevant paragraph.
Who pays compensation
(4) The compensation is payable by the Commonwealth.