Page 1498 - Week 05 - Wednesday, 10 April 2013
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in the number of developments to which the lease variation charge has been applied since 2010-11. In 2010-11 a total of 168 developments were assessed, with a total value of $21.7 million determined. In 2011-12, a total of 181 assessments were made, with a total value of $13.8 million determined.
The latest LVC activity report continues this trend. It shows that in the financial year to 4 April there have been 115 applications, with a total determined value of $22.772 million. The amount of revenue received to date has increased to $7.361 million on those 115 applications. And I will repeat those figures: $1.735 million from 46 residential redevelopments, encompassing 281 units; $888,000 from commercial sector redevelopments across 29 applications; $460,000 from industrial redevelopments across 14 applications; and $4.278 million from mixed and other redevelopments across 26 applications.
There are around 82 applications with an assessed value of nearly $15½ million that have been determined in the last two years but are not yet paid. Applicants, of course, have—
Mr Smyth: What does that tell you?
MR BARR: Applicants have two years, Mr Smyth, to pay the lease variation charge once it has been determined on a development application.
In accordance with the Planning and Development Act 2007, ACTPLA keeps a public register for each section 277 chargeable variation of a nominal rent lease through the requirement for these to be documented in the relevant development applications, all of which are listed on the ACTPLA website.
Applications set to flow to the territory include 45 residential redevelopments with assessed revenue of $2.344 million, 13 commercial applications with assessed revenue of $1.57 million, seven industrial applications with assessed revenue of $443,000 and a further 17 mixed redevelopment applications with about $11,054,000 in assessed revenue.
The government recognises the important contribution that is made by developers who build housing and commercial developments. I think the principle that has been in place in this city for more than 40 years is that it is only right that developers who profit from the city’s vibrancy and make windfall profits granted by a change of lease to allow a redevelopment share some of that with the community for the benefit of all Canberrans.
The point the government has made that so upsets the shadow treasurer is that every cent that is earned through the lease variation charge is invested directly into the government’s urban improvement fund. This fund ensures that the returns from development are reinvested back into the community to improve the amenity and support the growth of our great city.
In the 2012-13 budget the urban improvement fund was used to fund a number of upgrades around the city, including restoring and upgrading sportsgrounds, upgrades
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