Codification project

In response to industry concerns, the ACT Government requested a review of the change of use charge system and approved the introduction of codification in the 2009-10 Budget.

This project is being managed by ACT Treasury. A draft report on the review of the change of the use charge system in the ACT is now available. The consultation period finishes on May 21 2010.

Reduction in change of use charge

 In June 2009 the ACT Government reduced the change of use charge to support investment in the ACT. The changes applied to general lease variations associated with design and siting applications and lease variations for disused service station sites.

General lease variations

The change of use charge was reduced from 75 percent to 50 percent of the "added value" for applications that involve construction proposals lodged between 1 June 2009 and 1 June 2010. However, for those lease variations which would attract a CUC of 100 per cent, the charge will be assessed at 75 per cent of the added value.

To access this reduction the following conditions must be met:

1. The lease variation application must be lodged between 1 June 2009 and 1 June 2010.

2. The lease variation application must be accompanied by or associated with an development application for a structure on the leasehold.

3. ACTPLA must decide that the variation is necessary and proportionate to the development application accompanying it or associated with it.

4. The reduction does not apply to a concessional lease.

The reduction in the change of use charge for general lease variations ends on 1 June 2010.

Disused petrol station sites

In the 2010-11 Budget the ACT Government  decided to  extend an incentive to encourage lessees to proceed with the redevelopment of closed service station sites across Canberra.

The incentive will see  100% of the change of use charge  remitted in 2010–11 for those service stations that ceased to operate before 1 June 2009.

The following additional performance measures must be met:

1.  a DA for design and siting must be lodged by 30 July 2010.

2.  for sites DA approved before 30 July 2010 the first inspection must be carried out by 30 December.

3.  for DAs lodged but not approved before 30 July 2010, the first inspection must be carried out within 6 months of the date that the decision takes effect.

The charge will still be determined in the normal way and the eligible lessee will be required to make the payment that will be held as a 'bond' until redevelopment at the site reaches the first stage construction inspection. When the inspection is passed, the change of use charge will be refunded in full to the lessee.

Lessees who have already proceeded with their development having factored in and paid the change of use charge before 1 June 2009 will not be eligible for a refund.