Page 1050 - Week 04 - Tuesday, 6 May 2014
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something, acknowledges that there is a problem. We can either get it right today or we can come back later and try to get it right at some other time.
I think my amendment does improve the bill. There is also the issue that it is not transparent. The process itself is really a case of going and lobbying the minister, putting in an application and seeing what happens. Indeed, between sections 277A(1) and (2) it is not very clear. In (1) it says “must not be taken into account” and in (2) it says things like “existing improvement by way of clearing, filling, grading, draining, levelling or excavating the land may be taken into account.”
There are dilemmas here. We can clear it up today. We can have a clear path forward for the industry. We can all, as a community, get the benefit, and we can help make sure that things work better here in the ACT. My amendment as foreshadowed, when we get to the detail stage, will make this work a whole lot better for just about every sector of the community.
MR RATTENBURY (Molonglo) (11.08): The Greens will be supporting the Planning and Development (Extension of Time) Amendment Bill today. This bill puts into place the changes to the extension of time scheme that were recently announced by the Chief Minister as part of the government’s stimulus package. These changes will occur through amendments to the Planning and Development Act 2007 and the Planning and Development Regulation 2008.
The extension of time scheme has often been debated in this place. It was intended to prevent land banking, but I would agree that the way that the scheme was previously set up was problematic. There were cases where developers had been legitimately delayed, which would lead to the accumulation of fees, which would in turn impede the ability for them to move forward with their plans to develop. It was also possible for individuals to accumulate large fees over time without being fully aware of it.
I know that the property and construction industry have criticised the extension of time fees for some time and have publicly welcomed the changes that will be brought forward with the bill. With the expected economic downturn caused by the federal budget, this measure is welcome as part of a broader stimulus package to counteract the barriers to development that occur in a softening market, such as difficulties in obtaining finance and tenants.
This bill allows changes to the extension of time scheme which reduce the fees and simplify the fee structure. From 1 April 2014, extension of time fees will be applied on completion breaches only, and fees will no longer be levied on commencement breaches. Fees will not be charged until four years after the completion date in the crown lease and from the fifth year fees will be billed annually at one times the general rates bill. This means that for a standard residential block there will be up to six years before any fees accrue and up to eight years for commercial blocks. Lessees will now be billed annually rather than having their debt accruing over time.
The changes also broaden the hardship provisions that allow the territory the discretion to reduce extension of time fees in individual cases. It also gives the flexibility to reduce, to partially negate or to indefinitely negate fees according to the
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