Change of use charge - lease variation charge
Note: From 1 July 2011, change of use charge will be known as lease variation charge.
Amendments to the Planning and Development Act 2007 commenced on1 July 2011, with a significant impact on the way the charge is calculated and determined.
The amendments include transitional provisions that allow applicants who lodge development applications before 1 July 2011, and that have not been determined, to opt-in to the new lease variation change process, provided they advise the Commissioner for ACT Revenue, through ACTPLA, by 1 October 2011.
For further information, please contact the leasing team on 6207 1926.
Background
A change of use charge (CUC)/lease variation charge (LVC) is payable if the lease (for the purpose of this information, "lease" means Crown lease) is varied, for example, by adding additional or higher value uses or increasing gross floor area. You may be required to pay a change of use charge when you change a lease provision and that change increases the value of the lease.
The rules and formula for change of use charge are set out in the Planning and Development Act 2007.
See the amendment bill here.
Why a charge is required
When your lease is first granted, the Territory is paid an amount that is based on the rights the lease contains at that time. If you vary your lease in such a way that its value increases, a lease variation charge based on that added value is payable. The purpose of the charge is to give back to the community some or all of the added value of your lease that results from the change to your lease.
Paying the charge
Once you have been told by ACTPLA that your lease variation charge has been determined, you will be told the amount of the charge and when you have to pay it. You must pay the charge within the requisite time before we can prepare the necessary documents to vary your lease.
A Lease Variation Estimator is now available online.
Get help
Contact us if you have any queries about how the change of use charge will be calculated on your lease variation.
How to begin
When you lodge an application to vary your lease you are required to provide a valuation from an accredited valuer.
