Land Rent Information Prior to 1 October 2013

Leases first granted prior to 1 October 2013

Eligibility

Lessees who have entered the Land Rent Scheme prior to 1 October 2013, via a land rent Crown lease first granted under a contract entered into prior to this date, will continue to participate in land rent under the arrangements in place at the time of entering the land rent lease.  That is, any changes to the Scheme made on or after 1 October 2013 will not affect land rent lessees already participating in land rent prior to this date.  This includes those lessees who exchanged contracts with the Land Development Agency for a land rent block before 1 October 2013, but are yet to settle on the purchase.

Existing land rent lessees will have access to both the standard land rent rate of 4 per cent and the discount rate of 2 per cent, depending on their circumstances. Existing lessees will also have no restriction on transfer of the lease.

Lessees who entered the Land Rent Scheme (through a grant or transfer of the block) prior to 1 October 2013 have different eligibility criteria for the discounted land rent rate to those land rent Crown leases first granted under a contract entered into after this date.  Lessees who entered the Land Rent Scheme via a land rent Crown lease first granted under a contract entered into prior to 1 October 2013, or via a transfer of such a block, will continue to be assessed on lessee income only, and the income threshold relating to post-1 October 2013 leases (which is based on household income) does not apply.

Land Rent Payable

Land rent lessees who participate in the Scheme under a land rent Crown lease first issued under a contract entered into prior to 1 October 2013 are able to access both the discount and standard rate of land rent.

The discount land rent rate is 2 per cent of the unimproved value of the leased land. For further details of how the unimproved land value is determined see Land valuations

The standard land rent rate is 4 per cent of the unimproved value of the leased land. 

When a land rent lease is granted, lessees will commence on the standard land rent rate.  All applications for the discounted land rent rate must be received by the Access Canberra Dickson Shopfront on behalf of the Commissioner for ACT Revenue using the Discount Land Rent Application/Review form [RTF, 1Kb], [PDF, 263Kb].  For eligible lessees, the discount land rent rate will apply from the date the application for discounted land rent was received by Access Canberra Dickson Shopfront on behalf of the Commissioner for ACT Revenue.

Eligibility for Discount Land Rent Rate

For those lessees who have a land rent block where the Crown lease was first granted under a contract entered into prior to 1 October 2013, the eligibility criteria for discounted land rent in  2016-17 are as follows:

  • Income: the total annual income of all lessees for the previous financial year must not exceed the income threshold amount as shown below.  The income is assessed based on lessee income only and does NOT include the income of any domestic partner:

Number of dependent Children

Total gross income threshold

0

$98,800

1

$102,130 

2

$105,460

3

$108,790

4

$112,120

5 or more

$115,450

  • Refer to DI2016-140 (Amounts Payable – Land Rent) for further information.
  • Property Ownership: lessees cannot own any other real property to remain eligible for the discount rate of land rent.  Should a lessee acquire any other real property at any time during the land rent lease, they must pay the standard rate of land rent. Ownership includes a legal and a beneficial interest.
  • Residency: at least one of the lessees must reside in the property once a Certificate of Occupancy has been issued.  Should a lessee fail to reside in the subject property, they must pay the standard rate of land rent.

Application Process for Discount Land Rent

Applicants must use the Discount Land Rent Application/Review form [RTF, 1Kb], [PDF, 263Kb] and provide evidence of income. All applicants will be advised on the outcome of their application in writing.

Annual Review

Lessees who obtained a land rent block where the Crown lease was first granted under a contract entered into prior to 1 October 2013 and who have been approved for the discount rate of land rent are required to confirm by 30 September each year that their annual income has remained under the applicable income threshold amount using the Discount Land Rent Application/Review form [RTF, 1Kb], [PDF, 263Kb].  An annual review of lessees' income will be conducted to determine their continuing eligibility for discounted land rent.

The standard rate of land rent as set by DI2015-176 at 4 per cent of the unimproved value of the leased land applies where the lessees are no longer eligible for discounted land rent for any of the following reasons:

  1. the lessees' total income exceeds the income threshold;
  2. if a Certificate of Occupancy has been issued—the lessees fail to take up residency or all of the lessees move out of the property;
  3. any one of the lessees purchases other real property.