Page 1993 - Week 05 - Thursday, 3 May 2012
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members for their contributions to the debate. As members would be aware, the Land Rent Amendment Bill will improve the operation of the current scheme. It has been a successful policy, designed and implemented in the territory. The scheme was implemented as one of the recommendations of the ACT’s unique affordable housing action plan. We are the only state or territory to provide this innovative scheme to address housing affordability.
The scheme has been developed to take advantage of the ACT’s leasehold system. It allows households to rent the land from government so that they only have to take out a mortgage on the house component of a home loan. This, of course, has the benefit of significantly reducing their up-front costs and their weekly mortgage repayments. The scheme assists some households, who might otherwise have been unable to enter the private housing market, to purchase their own home. By reducing the barriers to entry and lowering the ongoing costs, it provides significant benefits to many households who have chosen to participate in the scheme.
Members would also be aware that the scheme has received national and international attention, with the ACT leading the way in providing affordable housing. Overall, the scheme has been very successful. Five hundred and forty-nine land rent contracts settled with a crown lease have been registered. A further 587 contracts have been exchanged. Due to the scheme, more than 1,000 households have been able to enter the housing market, households who may have been unable to do so without access to the scheme.
I was very pleased recently to announce that the scheme was being supported by a second financial institution, bankmecu. This is undoubtedly a very positive development. The government will continue to provide information sessions for those seeking to utilise the scheme run by the Canberra Institute of Technology. I understand that since the scheme was put in place in July 2008 the sessions have attracted nearly 3,000 people.
Government has undertaken an internal post-implementation review of the scheme to determine whether the policy has met its original objectives. This review was undertaken after the scheme had been in place for an appropriate period. The post-implementation review included an assessment of the administrative processes between government directorates and whether any legislative provisions needed adjustment.
The Land Rent Amendment Bill 2012 contains a number of legislative amendments that will improve the operation and effectiveness of the scheme. The proposed amendments to the Land Rent Act 2008 are, indeed, aimed at improving the operation of the scheme. They will keep a focus on the objective, to provide greater access to affordable housing in the territory.
Community Housing Canberra will be one of the significant beneficiaries of the proposed amendments in the bill. They play a very important function within the territory. They are recognised as an affordable housing provider and provide community housing to eligible Canberrans. Under the current legislation, CHC are able to access the scheme at the standard rate of four per cent. This amendment will
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