RZ1 LVC Partial Waiver
Background
The new Territory Plan will enable dual occupancies on RZ1 Suburban Zone blocks to be unit titled (and therefore able to be individually sold) where the block size is a minimum of 800 square metres and the second dwelling to be constructed is 120 square metres or smaller (excluding the garage or carport).
The ACT Government announced temporary changes to the lease variation charges (LVC). From 27 November 2023 to 30 June 2026, owners can choose whether their LVC to amend the maximum number of dwellings on their RZ1 block is either: the codified values or 75 per cent of the value uplift as measured by an accredited valuer, whichever is lower.
Further information about the LVC is available on the Environmental, Planning and Sustainable Development Directorate (EPSDD) website at: www.planning.act.gov.au/community/buy/leasing-and-titles/crown-leases/changes-to-a-crown-lease/lease-variation-charge
Eligibility Criteria
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. An application for a partial LVC waiver must be lodged with the ACT Revenue Office using the form below.
If the Commissioner is satisfied that 75 per cent of the value uplift (under a valuation-based approach) from the lease variation is less than the codified LVC amount you may be eligible for a waiver of the difference.
- The LVC must be imposed in relation to amending the Crown lease to amend the permitted number of dwellings to allow for unit titling of a dual occupancy property.
- Codified amounts for what are known as standard chargeable variations and can be found under Schedule 1, item 1 and/or Schedule 2 of the DI2023-278.
- The value uplift is the difference between the value of the land immediately before and after the lease variation is approved (V1 – V2). The valuation uplift must be supported by a valuation report.
To be eligible, development applications must be lodged with the Territory Planning Authority from 27 November 2023 to 30 June 2026.
Waiver applications must be submitted within 60 days from the date of approval of the development application. Late applications will not be accepted.
How to Apply
To apply for a partial waiver, you will need to:
- Download and complete the RZ1 LVC Partial Waiver Application from the ACT Revenue Office webpage on the www.revenue.act.gov.au/self-assessment-tools-and-forms/forms.
- Obtain copies of the following supporting documents:
- A valuation report by an accredited valuer that uses the valuation method consistent with V1-V2 ‘non-standard chargeable variations’ in section 332 of the Planning Act 2023. Please note that:
- for example, an accredited valuer is certificated by the Australian Property Institute, Australian Valuers Institute, or the Royal Institution of Chartered Surveyors. Therefore, an accredited valuer may not include a real estate agent, if they are not specifically accredited;
- the valuation date must be based on the date the development application is approved; and
- no other reductions of LVC will apply;
- The LVC Notice of Assessment.
- The Development Application Notice of Decision.
- A valuation report by an accredited valuer that uses the valuation method consistent with V1-V2 ‘non-standard chargeable variations’ in section 332 of the Planning Act 2023. Please note that:
- Submit your completed RZ1 LVC Partial Waiver Application form and all supporting documents to this Office at RZ1LVC@act.gov.au.
It is your responsibility to ensure that the correct supporting documents are provided within 60 days from the date of approval of the development application. If you do not provide the documents (including the valuation report by this date), your partial waiver application will not be considered complete and will not be accepted.
What happens if 75 per cent of the value uplift is higher than the codified LVC?
If the 75 per cent of value uplift approach results in a higher LVC than the codified LVC, you will not be charged more than the codified LVC amount. You would not be eligible for a partial waiver either.
What if I have already paid my lease variation charge?
If you have already paid your LVC then your application will still be considered for a partial adjustment, whereby you would be repaid the amount of LVC that would have otherwise been waived under the partial LVC waiver.
What can I do if my waiver application is declined?
If your RZ1 LVC Partial Waiver Application is declined and you do not agree with the decision, you may apply to the Commissioner of ACT Revenue for a reconsideration.
A reconsideration application must be lodged within 60 days of the date of the letter advising you of the decision and include the reasons why you believe the decision is incorrect. Reconsiderations should focus on the facts as to why you consider the decision is wrong having regard to the eligibility criteria.
To apply for a reconsideration, please email RZ1LVC@act.gov.au with your supporting arguments along with your full name and property details for your Suburb, Section and Block.