• A Crown lease will have an associated building and development covenant which outline when construction must commence and be completed.
  • If you want to transfer a Crown lease, you will need to apply for consent from the Territory Planning Authority (the Authority).
  • A breach in a Crown lease or licence can lead to termination of the lease.

Varying a Crown lease

You might want to make changes to your Crown lease. You can vary a Crown lease by:

  • adding a provision
  • removing a provision
  • changing one or more provisions.

To vary a Crown lease, you need development approval.

If your proposal includes design and siting components and a lease variation, you only need one development application (DA).

Types of variations

You can vary a lease for different reasons. This includes:

  • varying the lease purpose to permit additional or alternative uses
  • varying development rights and obligations, like increasing your gross floor area (GFA) to make room for future growth
  • subdividing a single block of land into 2 or more blocks of land
  • consolidating 2 or more blocks of land into a single block of land
  • varying other requirements stipulated in the lease, like car parking.

All variations depend on Territory Plan requirements.

Getting development approval

You'll need to submit a DA to vary your Crown lease.

Your application will need a valuation report and valuation certificate. You can get these by organising a valuation assessment. The valuation assessment will need to address the before and after values of the lease.

Some changes to your lease will have associated costs. Find out about Lease Variation Charges (LVC).

Implementing approved variations

The type of variation you're looking for will impact how the variation is executed. The variation may be implemented by:

  • instrument of variation registered against the title to your property. i.e if your proposal involves subdivision, consolidation or change in density of development.
  • surrender of your lease and the regrant of a new lease to you, i.e. if your proposal involves a minor change. For example, the payout of land rent.

Lease variation impacts on valuation and rates

If you're looking to remove the concessional status   or vary a Crown lease, you'll need to consider associated financial impact. You won't receive a waiver from the ACT Government for changes due to a lease variation.

Find out more about changes in the new Territory Plan.

Lease variation impact on property valuation

You'll need to pay an LVC if you're a leaseholder looking to:

  • add new purposes to a Crown lease
  • expand existing purposes on a Crown lease.

These types of changes often lead to higher property valuation. Because of this, the LVC is 75% of the increased value of the lease. It recognises the value uplift of your development.

The valuation is based on the ‘highest and best use’ of the land. This means the most valuable use of the land can be put under the lease terms. This can happen even if the land isn't being used for its most valuable purpose.

You might vary a lease to add a new higher-value purpose on only a portion of the land. This type of restriction is considered by the ACT Valuation Office. If the lease only uses a portion of the land for a specific purpose, only that portion will be valued. This means there will be limits to how much increased value you’ll see on the lease. The rates you need to pay will be reduced.

Lease variation impact on rates

As a property owner in the ACT, you generally pay yearly rates. Revenue from these rates fund services in the community, including:

  • hospitals
  • schools
  • public transport.

Your total rates bill is determined by the unimproved value of the:

  • land
  • marginal rating factors
  • fixed charge.

Commercial rating factors are applied to all leases that are not used for residential or rural purposes. Commercial rates are currently increasing by an average of 6% a year under the ACT Government’s tax reform program.

Rental lease variations

Rental leases may be varied in certain circumstances. They often can't be varied to extend the terms.

Variation of rental leases

You must pay all rent up to the date of the variation for the Authority to execute a variation. If a variation is put in place, the Authority will reappraise the rent payable under the lease. This reappraised rent is payable from the date of variation. This is communicated by written notice.

Nominal rents

There are some cases where your rental lease won't be varied to reduce the payable rent.

Payable rent won't be reduced to a nominal rent (5 cents per annum), unless:

  • the lease is included in a prescribed class of leases
  • all rates and land tax are paid
  • all provisions in the lease requiring the lessee to develop the land are met
  • lessee has paid an amount decided by any policy direction of the Minister.

Sometimes you will have a rental lease varied to reduce rent to a nominal rate. The varied lease must then state that the lessee will pay the nominal rate each year if and when that rent is requested.

It'll take 20 working days after the day notice of the variation is given or on a later day if specified in the lease.

Reviews of rent variation

It's possible to request the Authority to review a rent variation. This needs to happen within 20 days after receiving a written notice.

Once they review your appeal, the Authority may:

  • confirm the variation
  • set aside the variation and substitute another variation.

Relief from compliance

Sometimes as a lessee, complying with the covenants of a Crown lease can be difficult. You can apply to the Authority for temporary relief of compliance. This includes payment of a rent covenant. Relief is not a waiver of rent.

Land rent payout

Some residents are part of the Land rent scheme. This means they have the option of renting land through a land rent lease rather than buying the land to build a home.

As the lessee, you may convert the land rent lease to a Crown lease. This means you're purchasing land from the Government.

Applications to pay out your land rent will include fees for:

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  • unimproved value applicable at the date of the application.

To convert a land rent lease to a nominal rent lease an application for a land rent payout must be lodged electronically by applying online at and paying the appropriate application fee.

Upon submitting the application, the applicant is required to include a copy of the current Valuation Notice from the ACT Revenue Office, or a valuation prepared by a private valuer. The ACT Revenue Office can be contacted on 6207 0028 if the current Valuation Notice has not been received.

Transferring a Crown lease

If you're looking to transfer your Crown lease, in most cases you will need to request consent.

Building and development covenant

When you sign a Crown lease, you'll also have a building and development covenant. This means you need to meet one or both of the following from the start of your lease:

  • commence construction on your land within 12 months
  • complete construction on your land within 24 months.

If you finish construction within the agreed timeframe, you'll receive a certificate of compliance. If you can't meet this, you'll need to apply for consent to transfer your land without complying with the building and development covenant.

Request consent to transfer a Crown lease

If you want to transfer your Crown lease, you'll need to apply to the Territory Planning Authority. You can do the following:

You'll need to make sure you complete your application properly. Fees apply if your consent to transfer application fails the completeness check. These fees depend on the number of failure notices you receive. If you're charged any fees, you'll need to pay these before consent to transfer approval.

You might be charged a fee to withdraw your application and re-submit the same information if it’s within 3 months. Any fees associated with this will need to be paid before you submit your application.

Changes to financial circumstances

Sometimes you might not meet the building and development covenant because of financial reasons. It's possible that since buying from the Suburban Land Agency (SLA), your financial circumstances have changed.

You can still apply to request consent to transfer your Crown lease. You'll need to include in your application:

  • a complete copy of your loan application to the bank or other financial institution. It needs to include details on compliance with the building and development covenant.
  • a letter or notification from the bank or other financial institution that your loan application has been declined. It needs to include a copy of the reasons why.
  • contact details for the loan officer at the bank or other financial institution. The authority may need to clarify and confirm the information you provide.

Your situation might be unique. The Authority will let you know what extra information is needed given the circumstances of your case.

Approval for transferring a Crown lease

A request to transfer or assigning a Crown lease may be approved by the Authority if:

  • the proposed assignee or transferee intends to follow the building and development provision
  • the proposed assignee or transferee has given any security required
  • the lessee can't meet the building and development provision due to financial circumstances
  • if a homebuyer has contracted a builder to build a home on the leased land
  • the lessee has a certificate of compliance showing building and development conditions are met
  • it is the first sale of an individual lease of undeveloped land by the developer on that land.

The Authority makes decisions on Crown lease transfers according to the Planning Act 2023 and its associated subordinate legislation, namely the Planning (General) Regulation 2023.

Appealing a decision

Sometimes the Authority will refuse your consent to transfer your Crown lease. If you're unsatisfied with the outcome, you can appeal to the Administrative Appeals Tribunal.

The Tribunal may:

  • confirm the Authority’s decision
  • vary the decision
  • make a new decision
  • ask the Authority to reconsider its decision.

If the Tribunal confirms the Authority’s decision, you'll need to:

  • meet the building and development covenants
  • surrender the lease to the Territory.

Exceptions to seeking consent to transfer a Crown lease

If building and development rules aren't met, there are some situations that don't need consent to transfer a Crown lease. This includes:

  • death of the Crown lessee
  • bankruptcy or insolvency
  • court order under the Family Court, an order of another court having jurisdiction under the Family Law Act 1975 (Cth) or an order under the Domestic Relationships Act.

If the lease doesn't have any development covenants, a certificate of compliance might not be required. An example of this is ex-government housing built before ACT self-government.

Termination of a Crown lease or licence

Breaching a Crown lease or licence might result in termination of your lease.

Leases provide a clear statement of rights and obligations. It's possible that a complaint is submitted if there is a breach. The Authority may investigate alleged breaches of a lease or licence. A complainant will be notified of the outcome.

Notice of possible termination

Before a lease or licence is terminated, the Authority and/or its delegate must send a written notice. You and anyone with a registered interest will receive this notice if the Crown lease or licence is breached.

The notice of termination must:

  • inform the lessee that the Territory Planning Authority is considering terminating the lease or licence
  • explain why possible termination is being considered
  • invite the lessee to notify the Authority why the lease or licence shouldn't be terminated. This needs to happen within 15 working days after receiving the notice.

Any reasons provided by the lessee for not terminating the lease or licence are considered before termination.

Notice of termination

A written notice will tell you why and when termination of your lease or licence will take effect.

Termination will take effect:

  • Lease termination: 10 working days after the notice is served.
  • Licence termination: 5 working days after the notice is served.

Copies of the termination notice are given to:

  • the lessee or licencee
  • any other persons with a registered interest in the lease.

Sometimes the lessee or licencee details are unknown. If this happens, the following may occur:

  • a copy of the written notice is published in the daily newspaper
  • lessee or licencee details are requested from the Office of State Revenue.

Possession of land

You can't remain in possession of the land in the lease if it's been terminated within the time stated in the notice. You must surrender the land to the Territory.

If the demand is not complied with, a court order may be enforced by the Magistrates Court. The court may issue a warrant for a police officer to enter the land. By reasonable force, possession of the land will be given to the Territory.

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