• If you want to vary your Crown Lease, you need permission from the government and must pay a fee.
  • Recent changes to the Lease Variation Charge mean you might be charged a different amount depending on the type of change you want to make. 
  • If you want to appeal the decision made about varying your Crown lease, you can apply to reconsider and then have the ACAT review the decision.

You need to get approval from the Territory Planning Authority (the authority) to change your Crown lease. If you want to change your crown lease to build or add a development, you’ll need to pay a Lease Variation Charge (LVC). The amount you need to pay depends on the change you've asked for.

Before you apply for a variation to a Crown lease, you’ll need to know about:

  • recent changes to the Lease Variation Charge
  • what the Lease Variation charges apply to
  • how to reconsider or review a decision for a variation
  • where to find data about lease variations.

Recent changes

On 27 November 2023, minor updates were made to LVC to align with the new planning system changes. No significant changes have been made to LVC under the new planning system. See the Planning and Development (Lease Variation Charges) Determination 2023 (the Determination 2023).

Specify or increase the number of dwellings

To update your Crown lease to 'specify the number of dwellings', the LVC is determined under Schedule 1 of the Determination. This allows for unit titling, where the Crown lease doesn't already specify the number of units.

Fees if you want to vary your Crown lease to:

  • increase the number of residential dwellings allowed in the Crown lease. See Schedule 2 of the Determination.
  • increase the maximum gross floor area (GFA) of a building on the land under a commercial or industrial lease. See Schedule 3 of the Determination.

Development applications (DAs) to vary a Crown lease will be determined under ‘Development Application Period 1’ of the Determination if:

  • submitted for a completeness check in eDevelopment before 1 July 2023 and
  • lodged before 1 April 2024.

Vary a nominal rent lease

You may need to vary your Crown lease which is a nominal rent lease. The process below details lease LVC processes. Please note it doesn't apply to a rental lease or a Land Rent Lease.

Exempt variations

The following are exempt and do not need LVC. Variations for:

  • a holding lease (to subdivide and develop)
  • authorising a secondary home on the Crown lease
  • a perpetual crown lease held by the University of Canberra
    • childcare centres, if:
    • adding a childcare centre
    • limiting the maximum number of children provided care in the childcare centre
    • increasing the maximum number of children provided care, and
    • increasing the maximum GFA of any building or structure permitted for use as childcare on the land under the lease.
  • to change the common boundaries between 2 or more leases, if:
    • the purpose clauses are the same, and
    • none of the leases are rural leases
    • to remove the concessional status of a lease.

Chargeable variations

There are 2 types of chargeable variation:

  • Section 331 (standard chargeable variations) – these are codified LVC fees (The Code)
  • Section 332 (non-standard chargeable variations) – to get the LVC value, a valuation process is required to assess the before and after values of the lease, and the 'added value'.

The Code

The determined fees and the associated maps are in the Determination. The relevant fees are in 3 Schedules:

Schedule 1 - Specific Charges

Table 1 and Table 2 include are used to calculate the LVC for variations to:

  • specify the maximum number of residential dwellings in the Crown Lease. This is used for Crown leases where the purpose clause permits "residential purposes only" – without limiting the number of dwellings. These items are used to specify the number of dwellings to permit unit titling.
  • limit the maximum number of non-residential units in the Crown Lease (in industrial zones)
  • consolidate Crown leases
  • subdivide Crown leases
  • increase in the gross floor area of service station
  • increase the gross floor area of a club
  • increase the maximum number of self care units in a retirement complex
  • increase the maximum number of care beds in the retirement complex
  • remove reference to the association use in a Crown lease purpose clause.
Schedule 2 - Residential

Table 1 and Table 2 of Schedule 2 is used to calculate the LVC for DAs which increases the number of dwellings permitted in the Crown lease. It is calculated based on the suburb, the total approved number of dwellings and the locality zone. This is used for Crown leases where the purpose clause states a specific number.

Example of purposes clause wording:

  • single dwelling housing
  • single unit private dwelling house
  • maximum of two dwelling or
  • not more than 5 dwellings

These expressions limit the number of dwellings permitted on the block.

It also includes Crown leases with a separate qualifier clause that states:

"that the building erected on the land shall be used only as a single unit private dwelling and where permitted by the Territory Plan a second single unit private dwelling PROVIDED THAT any outbuildings erected on the land shall not be used as a habitation".

This clause permits the Crown lease to be used only for a maximum of two dwellings.

This schedule is used to increase the number of dwellings to permit unit titling.

Schedule 3 - Commercial and Industrial

The charges in Tables 1 to 8 of Schedule 3 apply to a chargeable variation to increase the maximum gross floor area (GFA) of any building or structure permitted for non-residential use on the land under a commercial or industrial lease. An example is to increase the maximum GFA from 1000m2 to 1500m2.

Remissions also apply to some s331 standard chargeable variations.

If the development application is approved, the delegate of the Commissioner for Revenue (currently within the Environment, Planning and Sustainable Development Directorate) will calculate the LVC in accordance with the schedule(s) and provide the applicant and Lessee with a notice of assessment. Remissions will be applied as applicable.

Section 332 non-standard chargeable variations

A section 332 non-standard chargeable variation is different to a section 331 standard chargeable variation. Section 332 non-standard chargeable variations are:

  • a variation to add or delete a use from the purpose clause
  • a variation to add or delete a clause
  • a variation to change an easement or
  • a variation to increase the number of dwellings in newer suburbs not listed in Schedule 2.

A section 332 non-standard chargeable variation is calculated using the formula in the Planning Act 2023.

LVC = (V1 - V2) x 75% Where: V1 = After Value and V2 = Before Value

When working out the V1 and V2 values, don't account for an improvement on the land comprised in the lease. The charge is based on the added value attributed to the lease by the variation.

Valuation assessments

A DA for a section 332 non-standard chargeable variation must be supported by a full valuation report. You can ask an accredited valuer to help with this in line with the Act. They also need to give you a valuation certificate that identifies the V1 and V2 values.

The accredited valuer's assessment will help you estimate the amount of LVC you need to pay. Please note the final amount of LVC payable is not determined until a DA is approved.

Find out more about what you need to lodge a DA.

The Authority may refuse to accept the valuation assessment. This is usually if you haven't supplied enough detail, evidence or valuation material.

If the DA is approved, the ACT Valuation Office will help the Authority understand if the values on the DA are within acceptable market limits.

The Authority may ask you for more evaluation evidence, rationale, costing or other information. This is if they believe it's necessary to properly calculate the LVC.

While the Commissioner for ACT Revenue has legal responsibility for LVC, the Authority has delegation to administer LVC.

A delegate of the Commissioner will determine the LVC and send you a Notice of Assessment if you're the applicant or the lessee.

Remissions

The following remissions are available for s331 (standard chargeable variations) determinations:

  • Schedule 2: DI2023-276 applies a remission value of 25% for a variation to increase the number of dwellings in a residential zone.
  • Schedule 3: DI2023-276 applies a remission value of 25% for a variation to increase the GFA of a non-residential building.

The following remissions are available for both Section 331 (standard chargeable variations) and Section 332 (non-standard chargeable variations):

This remission is ongoing and only applies to developments by the Commissioner for Housing.

Notice of assessment

After the DA is approved and the LVC is calculated, you will get a Notice of Assessment if you're the applicant or lessee. The Notice of Assessment includes the charges to vary the Crown lease. The Notice also gives payment options and provides options to review the decision.

RZ1 LVC Partial Waiver

If you are the owner of an RZ1 block with an approved development application to amend the number of dwellings permitted in your Crown lease to allow for unit titling of a dual occupancy, you may be eligible for a partial waiver of your LVC. Further information on eligibility and how to apply for this partial waiver is provided at: https://www.revenue.act.gov.au/lvc/rz1-lvc-partial-waiver.

Reconsiderations and reviews

Reconsider an s332 non-standard chargeable variation

If you're the applicant or lessee and receive a Notice of Assessment with a section 332 chargeable variation, you can request the Commissioner for ACT Revenue to reconsider the decision for the section 332 component. You must apply for reconsideration in writing on the approved form. If you're the applicant, you and the lessee must sign the form.

The Authority manages the process for reconsideration of a decision.

To apply for a reconsideration, complete the Reconsideration form and pay the fee. You should include in your application:

  • a statement on why you're seeking a reconsideration
  • a copy of the working out statement, if you got one from the Commissioner for Revenue
  • an independent valuation calculating the amounts for the before and after values under the Act. This valuation must be:
  • prepared by an accredited valuer who wasn't involved in working out or advising on the original decision. The applicant and a delegate of the Commissioner for Revenue must also agree to the valuer. The costs associated with the independent valuation are the responsibility of the applicant.
  • any extra information that wasn't provided with the original DA.

Applications for reconsideration can't be made more than:

  • 80 working days after the day the Notice of Assessment under s329(1) is given or;
  • if a later day is prescribed by regulation, that day or any longer period as extended by the Commissioner for Revenue.

The delegate of the Commissioner for ACT Revenue must reconsider the original decision. They will either make a substitute decision or confirm the original decision within 20 working days from the lodgement date. The 20 working day period may be extended for longer if the Commissioner for ACT Revenue and the applicant both agree.

Review by the ACT Civil and Administrative Tribunal (ACAT)

The ACAT handles hearing applications to review a decision made by the delegate of the Commissioner for Revenue. This is only for lease variation charges under section 332.

If you're the applicant, you can't appeal to the ACAT until after a Reconsideration of the Notice of Assessment is complete.

Read more information on applications for administrative review through the ACAT.

LVC data

EPSDD's annual reports include annual data on the value of Lease Variation Charges.

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