• A Crown lease is your rights and obligations associated with your land or property. This includes rules around granted leases, and any changes to Crown leases. 
  • Planning reports are used to determine the impact of granting a Crown lease and how this can be managed.

Leasehold

Leasehold is ACT's system of land tenure. If you hold a Crown lease on a land or property, you effectively own it.

If you're looking to build on your land, you can't start until:

  • the Crown lease is granted or transferred to you, and
  • unless your development is exempt development, you have an approved development application (DA) for the building.

Unless you have a restriction in your lease, you can sell your lease if you've completed the building and development outlined in your original lease agreement.

Leases take time to become available. Crown leases on individual blocks of land are issued when roads and services are completed. You may see leases advertised for sale or ballot sooner.

You can’t become the registered proprietor of the block until it is legally granted or transferred to you. This means you may not be able to borrow money until the lease is available.

Length of leases

A residential lease is usually for a term of 99 years in the ACT.

You're often granted the right to use and enjoy leased land for the length of the lease. You can apply to the Territory Planning Authority (the Authority) for a further Crown lease any time during the term of the lease.

Sometimes your Crown lease can be altered, if:

  • the Territory acquires whole or part of your leased land, if the land is for public purposes.
  • there is a withdrawal clause on the lease, where the Territory may withdraw the whole or part of the leased land without using it for a public purpose.
  • you're granted a new residential lease, if the land isn't needed by the Territory or Commonwealth. The person holding the old residential lease may have this extended. There is no payment for the lease other than an administrative fee. This means you'll have the security of continuing to occupy the land.

Granted leases

Granted leases are lodged with the Registrar General.

Leases can be granted through:

  • auction
  • tender
  • ballot, or
  • direct sale.

Direct grants

Sometimes you might be restricted from being granted a lease.

You can only receive a direct grant if:

  • the lease meets the criteria in the Planning (General) Regulation 2023
  • approved by the Executive, or sometimes the Minister for Planning.

Notice of direct grants are provided to the Minister who reports regularly to the Legislative Assembly.

Development covenants in Crown Leases

An important requirement for Crown leases is maintaining the building and development agreement (covenant). This means completing your building within 24 months from the start date of the lease.

Practices for development covenants in Crown leases have changed for DAs for:

  • construction
  • consolidation
  • subdivision of existing buildings.

If you have DA approval, you'll need to consider changes to the development covenants:

  • DA approval needing surrender existing leases and re-grant a new lease. The Authority won't insert development covenants into the granted lease. This means a timeframe to start and complete approved development isn't added.
  • subdivision requiring granted lease over one or more blocks. The lease will specify the timeframe that the lessee needs to start and complete the approved development.

Use of land

Leased land and buildings on the land can only be used for a purpose authorised by the lease. This includes:

  • transitional arrangements only apply to existing lease conditions
  • a lease or further lease doesn't give rights to the use, flow and control of water under the land (except for rural leases)
  • development approval is needed if the land use needs a development application.

As a property owner, throughout the lease you are responsible for maintaining and repairing the buildings and land.

If you're concerned someone is not maintaining their property, you can:

Surrender or termination of a lease

Sometimes you might want to surrender a Crown lease or part of a lease. You can do this at any time if you have permission from the Authority. A surrender doesn't mean you get a refund or remission of any rent already paid or owing.

If you surrender or terminate a lease, you may need to pay the amount listed in the Planning and Development Regulation 2008. The Authority may authorise this payment to the person surrendering the lease, or the person whose lease is terminated.

Planning reports

Planning reports are used when significant planning issues arise.

They’re used to:

  • identify and assess the impacts of granting a proposed Crown lease
  • inform the decision if a Crown lease is offered or not offered
  • help craft the terms of a draft Crown lease for prospective buyers
  • inform the Territory Planning Authority’s consideration on if a variation to the Territory Plan is appropriate
  • inform a plan of management for public land.

Sometimes there are strategic planning implications. If this happens, a strategic environmental assessment is used instead.

When planning reports are used

A planning report usually comes from:

  • the Territory Planning Authority
  • Minister for Planning on behalf of the Authority.

A planning report can be requested:

  • before a lease offer
  • when there is a proposed Territory Plan variation
  • where an assessment is required to inform a plan of management.

An example of a planning report request is if there is an intention to offer a lease over a large parcel of undeveloped commercial land. Especially if there are issues raised on:

  • appropriate use of commercial or residential space
  • building form
  • infrastructure, tree retention and traffic management

In contrast, a small undeveloped parcel of land might not raise the same issues. In this case, a planning report isn’t needed.

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