Page 1994 - Week 05 - Thursday, 3 May 2012
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allow them to access the scheme at the discount rate of two per cent. Allowing CHC to access the scheme at the discount rate will allow them to offer a homeownership product to their tenants, with a target for transition from tenancy to full ownership. So this amendment will provide more Canberrans with access to affordable housing choices.
The bill proposes that Housing ACT be excluded from accessing the scheme. An evaluation of the policy found that it would not be appropriate for Housing ACT to access the scheme. As a government-owned agency, there are more direct and transparent means available to provide finance through the annual budget process.
A principle of the scheme is to maintain flexibility and allow for changes in circumstances of Canberra households. Under current legislation, households are only able to move from the standard to the discount rate immediately, as opposed to annual assessment time, if they can demonstrate hardship.
An evaluation of the scheme found this policy to be burdensome, and the amendments proposed in the bill should abolish this delay. This would mean that all households who apply for the discount rate will be able to access it from the date of application should they be eligible for that rate. They will no longer have to go through the difficult and lengthy process of proving hardship.
The bill also contains other minor amendments to streamline processes for the ACT Revenue Office, which will improve the scheme’s administrative efficiency.
The government is committed to releasing 18½ thousand dwelling sites over four years, and many of these will have the land rent scheme option available. Land rent is available on new single-residential blocks of land released by the LDA. Contrary to suggestions, it is not the government or the LDA which nominates the blocks available for land rent. Rather, households make that choice when they choose which block to rent.
The land rent scheme has added another housing alternative for households to choose to achieve their goal of homeownership. The government—and we have expressed this on many occasions—is disappointed that those opposite have not supported the scheme since its introduction. However, I do acknowledge their support for this bill today. It is a practical step towards improving the operation of the scheme, and I commend it to the Assembly.
In relation to the Duties Amendment Bill 2012, it clarifies the intended value of a land rent lease for the assessment of duty. The land rent scheme is part of the government’s affordable housing action plan and does provide the opportunity, as I have said, for people to own a house sooner than would otherwise be possible, by reducing the up-front costs of financing the purchase of land and construction of a home on that land.
Households participating in the scheme, though, are able to purchase the land at any time. They do this by applying to the Planning and Land Authority for a lease variation to reduce the land rent payable to a nominal rent. Under section 22(3) of the Duties Act, the granting of a land rent lease by the Planning and Land Authority
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