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Legislative Assembly for the ACT: 1999 Week 7 Hansard (1 July) . . Page.. 1949 ..

MR SMYTH

That said, at this stage it is the Government's longer term intention to work towards introducing Option 2 of the Nicholls report - essentially to move away from the change of use charge to a development contribution model, probably along the lines of the Section 94 model used in New South Wales. This will be done after detailed consideration by the community, the Assembly and the Government.

The Bill I am introducing today is quite simple in its content and effect. It makes only these changes:

changes to the general rate of charge ('CUC') payable under the Act;

removal of the "sunset' provisions that require the rate of charge to become 100% of assessed added value on 31 August 1999; and

changes which ensure that regulations remitting or increasing the CUC will be permitted to commence in the normal way, rather than as currently stipulated in the Act.

The main provisions in the Bill amend sections 184A and 187A to change the general rate of CUC from 75% to 50%. This adopts the recommendation made by Professor Nicholls at recommendation 18 of his Report.

To support the amendment to 50%, the Bill also removes the current "sunset" provisions in the Act, at sections 184B and 187B, under which the rate of CUC is due to move to 100% of added value on 31 August 1999.

The Government is of the view that the rate should be set at a level considered reasonable by a wide range of people within the community. That would appear to be 50% - the rate that remained in place for 20 years prior to 1990, and which attracted the least criticism.

The proposed changes to the Act will apply to any lease variation approval except where the determined CUC has already been paid.

The Land (Planning and Environment) Regulations will require amendment to ensure that the reduction in the general rate to 50% does not result in unwarranted windfall gains to particular groups. This will mean that:

regulations providing for a remission of 25%, taking the amount payable to 50% ( that is, Commissioner for Housing leases), are repealed, so that the amount payable does not change as a result of changes to the Act; and

regulations providing for an increase of 25% ( relating to new leases, additional land approvals and concessional leases) are amended to provide for an increase of 50% - for the same reason.

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