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Legislative Assembly for the ACT: 1996 Week 9 Hansard (29 August) . . Page.. 2839 ..

(On 2 April 1991 the new Land ( Planning and Environment ) Act was introduced).

From 22 April 1992 the method for valuing property remained the same as in "Method B" the only exception being that it wasn't assumed that the lease would extend for 99 years. The sliding scale for remission remained unchanged. This method is known as Method "C and ran unchanged to 13 September 1993. Redevelopment potential was included in respect of the before value.

On 14 September 1993 the then Minister announced further changes to the method for calculating betterment derived from variations to leases. Calculation of betterment was based on the value of the land only. This effectively eliminated any potential. It was determined also that the present before value would be calculated on the basis that no change would occur during the life of the lease.

In addition to the method of calculation of values, the rules as to which variations were entitled to the sliding scale for remission was amended. A lessee/developer was now required to pay 100% of the added value (ie the difference between the before and after values) for all variations involving residential to commercial or commercial to higher order commercial.

The sliding scale would continue to apply to lease variations involving residential to higher order residential and commercial to residential. This method is referred to as Method "D".

The only exclusion to the above policy was for leases in Fyshwick for a period of 12 months. This would give Fyshwick lessees both the incentive and the chance to correct lessees with existing lease purpose breaches. All leases in Fyshwick, including leases that had not previously been in breach of their purpose, were given the right to vary their lease using the sliding scale of remission. This policy expired 14 September 1994.

The above history relates mainly to commercial and residential leases however there are several exceptions mentioned below-

. During the early 1980's a policy was introduced ( now included in Land Act Regulations ) for a specific area known as the "Kingston Griffith Redevelopment Zone" where the Government instead of requiring betterment to be paid for residential (multi unit) redevelopment charged an augmentation fee. The fee was related to numbers of original residential blocks to be consolidated and numbers of units to be constructed and was introduced as an incentive to see this particular area redeveloped. Generally speaking the cost to the lessee/developer was less than what it would have been had betterment been sought. This policy still exists.

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