LVC revenue continues to fall but so does the amenity of our city

LVC revenue continues to fall, but so does the amenity of our cityWhile revenue from the ACT Government’s controversial Lease Variation Charge (LVC) continues to fall, Canberra’s city centre suffers the consequence of a flawed policy, says the Property Council of Australia.”The ACT Government’s Consolidated Financial Report for June 2015 finds that LVC revenue has raked in just $11.35 million – $2.8 million below budget,” says the Property Council’s ACT Executive Director, Catherine Carter.”In fact, the Territory’s forecast revenue from the LVC has plummeted year on year – a sure indicator that the volume of redevelopment continues to drop. “The ACT Government budgeted for LVC to bring in $23 million in 2012 and missed the mark. After lowering its expectations to $14 million this financial year, it still hasn’t managed to meet budget.”This is a flawed policy – and the ACT Government has never achieved the revenues it forecasts. Instead, it has placed a handbrake on investment and renewal in our city centre – with the evidence clear to any visitor to Civic.”The LVC was introduced in July 2011, despite industry’s concerns that the charge would discourage building upgrades, and focus new development into greenfield areas or vacant sites in established areas where development is more cost-effective. “Canberra’s office vacancy rate of 15.3 per cent is the second highest in the country. To a large degree, the LVC prohibits the adaptive reuse of empty, redundant C and D Grade commercial offices. “Unless the ACT Government adopts a more realistic taxation policy, these older buildings will continue to deteriorate and detract from the liveability of our city. “But there is an alternative. What we need are positive policies to enable to rehabilitation of the tired areas of our city and which will help create exciting new places for Canberrans to live, work and play.”The solutions are well within reach. Lifting the LVC handbrake so that old offices can be converted to apartments, hotels and retirement developments can be a driver for positive economic, social and environmental outcomes, and much needed urban renewal in our city,” Ms Carter concludes.Media contact: Catherine Carter |M 0412 330 079|P 02 6248 6902