25 October 2023
Property Council welcomes planning reform and new tax incentives to stimulate development
The Property Council of Australia has welcomed the ACT Government’s commitment to further tax incentives to stimulate development.
Today the ACT Legislative Assembly has debated on the new Territory Plan that will come into effect from November 27 and the Government has provided further tax incentives to stimulate the uptake of their policy.
ACT and Capital Region Executive Director Shane Martin said although more needed to be done with planning this was an important step in the right direction for reform.
“We welcome the initial step of RZ1 reform and permitting Unit Titling of Secondary dwellings for blocks larger than 800m on RZ1²” Mr Martin said.
“Property Council is of the view that this initiative could go a step further beyond the 120m² GFA limit however.
“We should be permitting duplexes of equal size to allow for a more comprehensive shift, whilst still maintaining desired character in established suburbs.”
However, Mr Martin said the two new tax incentives announced today for RZ1 redevelopment will assist in policy uptake and was welcomed.
“Firstly, the waiving of stamp duty for purchases valued up to $800,000 for the first transfer of one of the two properties unit tiled under RZ1 will remove a barrier for purchasing,” he said.
“This should create more purchasers for the second dwelling in Canberra and stimulate growth and feasibility.
“Secondly the Lease Variation Charge (LVC) valuation change will provide more confidence in redevelopment within RZ1.
“When the redevelopment for a dual occupancy happens under the RZ1 reform this will change the value of the property and you would normally be required to pay the LVC codified charges.
“This new change will mean that an owner can opt to have their own valuation done if they disagree with this amount. Once their valuation is concluded they are able to pick the lowest amount.
“This is a good step in the right direction as this is the main tax of the ACT Government and through concessions and changes like this they can stimulate residential development to provide the housing supply Canberra needs.”
There are a number of other notable positives within the Territory Plan that will help to drive the development Canberra needs. The Property Council welcomes the following initiatives handed down in the plan:
- Changes to RZ2 to enable potential increases in established suburbs’
- Changes to CZ4 to enable residential development in Local Centres
- Addition of EV charging for multi-unit dwellings
- Reductions to parking requirements to promote Active Travel
- Ability to subdivide RZ2, 3, 4 and 5 without requiring construction of a building will create more flexibility for development
“As we continue to grow our population in the ACT we must continue to consider planning reform and continue to provide the positive initiatives that will help cater for this growing population” Mr Martin said.
Media contact: Aidan Green | 04910 300 28 | [email protected]