Page 4434 - Week 12 - Thursday, 26 October 2017

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That this Assembly:

(1) notes that:

(a) the 2017-18 Budget increased the Lease Variation Charge on unit titling of residential dwellings on many residential crown leases from a tiered scale of $7 500 and $5 000 per dwelling to a flat charge of $30 000 per dwelling on the grounds that “this will improve consistency with the ‘per unit’ charges which apply to other types of residential lease variations”;

(b) this charge is primarily paid by new multi-unit residential developments such as duplexes, townhouses and apartments;

(c) industry groups representing individual developers who will pay the increased charges identified that this change could have unintended consequences for individual developers, housing affordability and the supply of new multi-unit housing and the Government responded to these concerns by announcing transitional arrangements on 19 July 2017; and

(d) industry groups supported these transitional arrangements but have raised concerns about the impacts of the change beyond the transitional period;

(2) further notes that:

(a) the Lease Variation Charge system is complex and presents opportunities for rationalisation and improvements in consistency;

(b) an implementation review of these revised charges is due within the next 18 months; and

(3) calls on the ACT Government to:

(a) review the full suite of Lease Variation Charges and remissions that apply to residential and mixed-use development, with the review to:

(i) include consideration of options for simplification of charges, such as consistency across lease types;

(ii) consider charges in context with the factors that influence the financial viability of re-development including zoning, allowed plot ratios, gross floor area and the value of the completed dwellings;

(iii) be conducted in consultation with the community, industry groups and other stakeholders;

(iv) be closely co-ordinated with the review of housing affordability policies;

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