Australian Capital Territory
Planning and Development (Lease Variation Charges) Amendment Determination 2015 (No 1)
Disallowable instrument DI2015–205
made under the  
Planning and Development Act 2007, s 276C (2) (a) (Lease variation charges—amount
payable) and s 276E (1) (Lease variation charges—s 276E chargeable variations)

1	Name of instrument
This instrument is the Planning and Development (Lease Variation Charges) Amendment Determination 2015 (No 1).
2	Commencement 
This instrument commences on the day after its notification day.
3	Instrument amended
This instrument amends the Planning and Development (Lease Variation Charges) Determination 2011 (No 1) DI2011-198.
4	Schedule 3 
Substitute schedule 3 with the attached schedule 3.
5	Schedule 4 
Substitute schedule 4 with the attached schedule 4.

Andrew Barr
Treasurer
19 June 2015

Schedule 3

Lease Variation Charge Determination
Schedule 3 – Commercial and Industrial	
column 1
Zone	column 2
Suburb	column 3
Applicable criteria (if any)	column 4
Additional gross floor area amount per square metre	
Commercial – Town Centres	
Commercial CZ1	Belconnen	Town Centre - Retail Core	$390	
		Town Centre - Business		
Commercial CZ2	Belconnen	less than 10,000m² GFA maximum	$515	
Commercial CZ2	Belconnen	10,000m² to 20,000m² GFA maximum	$360	
Commercial CZ2	Belconnen	20,000m² GFA maximum and above	$265	
 	 	Services Zone	 	
Commercial CZ3	Belconnen	less than 5,000m² GFA maximum	$465	
Commercial CZ3	Belconnen	5,000m² GFA maximum and above	$400	
 	 	CZI Areas	 	
Commercial CZ1 	City	Less than 10,000m² GFA maximum	$570	
Commercial CZ1 	City	10,000m² to 20,000m² GFA maximum	$380	
Commercial CZ1 	City	20,000m² GFA maximum and above	$340	
Commercial CZ1	Greenway	Town Centre Retail Core	$390	
Commercial CZ2	Greenway	Town Centre –Business	$265	
Commercial CZ3	Greenway	Town Centre Service Zone	$265	
Commercial CZ1	Gungahlin	Town Centre -Retail Core	$390	
Commercial CZ2	Gungahlin	Town Centre -Business	$275	
Commercial CZ3	Gungahlin	Town Centre Service Zone	$245	
Commercial CZ5	Gungahlin	Mixed Use Area	$220	
Commercial CZ1	Phillip	Town Centre Retail Core	$390	
Commercial CZ2	Phillip	less than 10,000m² GFA maximum	$465	
Commercial CZ2	Phillip	10,000m² to 20,000m² GFA maximum	$370	
Commercial CZ2	Phillip	20,000m² GFA maximum and above	$250	
Commercial CZ3	Phillip	Town Centre Service Zone	$560	
Commercial – Group Centres	
Commercial CZ3	Amaroo	Group Centre-Service Zone	$430	
Commercial CZ5	Barton		$600	
Commercial CZ2	Braddon	Business Zone	$1,310	
Commercial CZ3	Braddon	Services Zone	$1,310	
Commercial CZ5	Bruce	Mixed Use Area	$430	
Commercial CZ1	Calwell	Group Centre-Core Zone	$770	
Commercial CZ3	Calwell	Group Centre-Service Zone	$530	
Commercial CZ1	Charnwood	Group Centre-Core Zone	$730	
Commercial CZ2	Charnwood	Group Centre-Business	$600	
Commercial CZ3	Charnwood	Group Centre Service Zone	$380	
Commercial CZ1	Chisholm	Group Centre-Core Zone	$670	
Commercial CZ3	Chisholm	Group Centre-Service Zone	$530	
Commercial CZ1	Conder	Group Centre-Core Zone	$820	
Commercial CZ2	Conder		$750	
Commercial CZ3	Conder	Services Zone	$510	
Commercial CZ1	Curtin	Group Centre- Retail Core	$770	
Commercial CZ2	Curtin	Business Zone	$510	
Commercial CZ3	Curtin	Services Zone	$600	
Commercial CZ2	Deakin	Group Centre-Business Zone	$1,370	
Commercial CZ5	Deakin	Mixed Use Area	$510	
Commercial CZ1	Dickson	Town Centre Retail Core	$1,270	
Commercial CZ1	Dickson	Group Centre-Core Zone	$770	
Commercial CZ2	Dickson	Group Centre-Business	$860	
Commercial CZ3	Dickson	10,000m² to 20,000m²GFA maximum	$510	
Commercial CZ3	Dickson	20,000m² GFA maximum and above	$400	
Commercial CZ5	Dickson	less than 10,000m2 GFA maximum	$700	
Commercial CZ5	Forrest		$600	
Commercial CZ5	Franklin	Mixed Use Area	$260	
Commercial CZ1	Griffith	Group Centre-Core Zone	$2,140	
Commercial CZ2	Griffith	Group Centre-Business	$1,290	
Commercial CZ5	Harrison	Mixed Use Area	$260	
Commercial CZ1	Hawker	Group Centre-Core Zone	$1,120	
Commercial CZ2	Hawker	Group Centre-Business	$750	
Commercial CZ3	Hawker	Group Centre Service Zone	$430	
Commercial CZ1	Holt	Group Centre -Retail Core	$730	
Commercial CZ2	Holt	Group Centre -Business	$650	
Commercial CZ3	Holt	Services Zone	$650	
Commercial CZ1	Kaleen	Group Centre-Core Zone	$820	
Commercial CZ1	Kambah	Group Centre-Core Zone	$940	
Commercial CZ2	Kambah	Group Centre-Business	$430	
Commercial CZ3	Kambah	Group Centre Service Zone	$510	
Commercial CZ1	Kingston	Group Centre-Core Zone	$1,460	
Commercial CZ2	Kingston	Group Centre-Business	$960	
Commercial CZ5	Kingston	Mixed Use Area	$650	
Commercial CZ5	Lyneham	Mixed Use Area	$600	
Commercial CZ1	Macquarie	Group Centre-Core Zone	$860	
Commercial CZ2	Macquarie	Group Centre-Business	$600	
Commercial CZ3	Macquarie	Group Centre Service Zone	$510	
Commercial CZ1	Mawson	Group Centre- Retail Core	$650	
Commercial CZ2	Mawson	Group Centre-Business	$510	
Commercial CZ3	Mawson	Group Centre Service Zone	$680	
Commercial CZ5	Oaks Estate	Mixed Use Area	$360	
Commercial CZ2	Turner	Town Centre-Business Zone	$800	
Commercial CZ5	Turner	Mixed Use Area	$600	
Commercial CZ1	Wanniassa  	Group Centre-Core Zone	$820	
Commercial CZ2	Wanniassa	Group Centre-Business	$700	
Commercial CZ3	Wanniassa  	Group Centre- Service Zone	$510	
Commercial CZ5	Wright	Mixed Use Area	$360	
Commercial CZ1	Weston	Group Centre-Core Zone	$820	
Commercial CZ3	Weston	Group Centre-Service Zone	$510	
Commercial – Local Centres	
Commercial CZ4	Ainslie		$770	
Commercial CZ4	Aranda		$540	
Commercial CZ4	Banks		$410	
Commercial CZ4	Bonner		$540	
Commercial CZ4	Bonython		$410	
Commercial CZ4	Bruce		$540	
Commercial CZ4	Calwell		$410	
Commercial CZ4	Campbell		$770	
Commercial CZ4	Charnwood		$540	
Commercial CZ4	Chifley		$540	
Commercial CZ4	Chisholm		$410	
Commercial CZ4	Cook		$540	
Commercial CZ4	Curtin		$540	
Commercial CZ4	Deakin		$770	
Commercial CZ4	Dickson		$770	
Commercial CZ4	Downer		$770	
Commercial CZ4	Duffy		$540	
Commercial CZ4	Dunlop		$540	
Commercial CZ4	Evatt		$540	
Commercial CZ4	Fadden		$410	
Commercial CZ4	Farrer		$540	
Commercial CZ4	Fisher		$540	
Commercial CZ4	Forde		$540	
Commercial CZ4	Florey		$540	
Commercial CZ4	Franklin		$540	
Commercial CZ4	Fraser		$540	
Commercial CZ4	Garran		$540	
Commercial CZ4	Giralang		$540	
Commercial CZ4	Gordon		$410	
Commercial CZ4	Gowrie		$410	
Commercial CZ4	Griffith		$770	
Commercial CZ4	Hackett		$770	
Commercial CZ4	Hall		$475	
Commercial CZ4	Harrison		$540	
Commercial CZ4	Higgins		$540	
Commercial CZ4	Holder		$540	
Commercial CZ4	Holt		$540	
Commercial CZ4	Hughes		$540	
Commercial CZ4	Hume		$230	
Commercial CZ4	Isabella Plains		$410	
Commercial CZ4	Issacs		$540	
Commercial CZ4	Kaleen		$540	
Commercial CZ4	Kambah		$410	
Commercial CZ4	Latham		$540	
Commercial CZ4	Lyneham		$770	
Commercial CZ4	Lyons		$540	
Commercial CZ4	Macgregor		$540	
Commercial CZ4	Macquarie		$540	
Commercial CZ4	Mawson		$540	
Commercial CZ4	McKellar		$540	
Commercial CZ4	Melba		$540	
Commercial CZ4	Monash		$410	
Commercial CZ4	Mitchell		$310	
Commercial CZ4	Narrabundah		$770	
Commercial CZ4	Ngunnawal		$540	
Commercial CZ4	Nicholls		$540	
Commercial CZ4	O'Connor		$770	
Commercial CZ4	Page		$540	
Commercial CZ4	Palmerston		$540	
Commercial CZ4	Pearce		$540	
Commercial CZ4	Red Hill		$770	
Commercial CZ4	Richardson		$410	
Commercial CZ4	Rivett		$540	
Commercial CZ4	Scullin		$540	
Commercial CZ4	Spence		$540	
Commercial CZ4	Tharwa		$410	
Commercial CZ4	Theodore		$410	
Commercial CZ4	Torrens		$540	
Commercial CZ4	Warramanga		$540	
Commercial CZ4	Watson		$770	
Commercial CZ4	Weetangera		$540	
Commercial CZ4	Weston		$540	
Commercial CZ4	Yarralumla		$770	
Industrial Centres	
Industrial IZ1	Fyshwick	General Industry 'A'	$215	
Industrial IZ1	Fyshwick	General Industry 'B'	$205	
Industrial IZ2	Fyshwick	Precinct 'A'	$365	
Industrial IZ2	Fyshwick	Precinct 'B'	$270	
Industrial IZ2	Fyshwick	Precinct 'C'	$335	
Industrial IZ2	Fyshwick	General Industry	$275	
Commercial CZ2	Fyshwick	Business Zone	$400	
Industrial IZ1	Hume	General Industry < 5,000m² GFA	$205	
Industrial IZ1	Hume	General Industry 5,000m² to 10,000m² GFA	$155	
Industrial IZ1	Hume	General Industry > 10,000m² GFA	$130	
Industrial IZ1	Mitchell	General Industry	$195	
Industrial IZ2	Mitchell	Mixed Use Industrial	$295	
Industrial IZ1	Symonston	General Industry	$315	
Broad Acre / Industrial IZ1	Beard	General Industry 	$230	

Schedule 4

Schedule 4 - Statement of Reasons – determining lease variation charges –
section 276E(4)(a) of the Act

In the 2009-10 Budget, the Government agreed to codify the Lease Variation Charge (LVC) in response to industry concerns about the degree of uncertainty in change of use charge determinations.  The agreed codification is achieved in part through determining the charges covered by this LVC Determination.

The LVC Determination is framed in such a way as to assign clear, fixed, unambiguous LVC values to specified lease variations in a specified locality (Territory Plan zone or sub-location within a zone). It does this through cross referencing the attached schedules and maps. Only one LVC value is assigned to any given lease variation. This approach has the following benefits.

The assessment of the LVC for lease variations covered by the LVC Determination will be efficient, transparent and straightforward. A lessee will be able to determine the LVC for a proposed lease variation essentially by looking at the dollar value the LVC Determination applies to the proposed variation at the block, section and location of the lease.  

The above approach will also mean that the LVC amounts for every lease variation covered is clear and therefore accountable. The calculation for these lease variations will also be straightforward and therefore accountable.

The above benefits of transparency and efficiency will also:
•	assist the property development industry with upfront project planning;
•	reduce holding costs because the LVC can be determined more quickly;
•	reduce administrative costs for applicants because a valuation report prepared by an accredited valuer will not be required; and
•	provide increased certainty and predictability in LVC determinations.

The intention is for the above benefits to be applied to as broad a range of lease variations as possible. As a result, the LVC Determination includes all lease variations to increase the maximum number of dwellings, all variations to increase the maximum gross floor area for non-residential use and several other categories.

How the Lease Variation Charge is determined – section 276E(4)(b) of the Act

The LVCs for lease variations to which schedule 3 applies (specific charges) have been worked out as follows.

The charges in Schedule 1 apply to a chargeable variation of a certain specific type that attracts a specific fee.

The specific fees relating to aged care units and beds are based on market value using recent transaction data. These fees are unaffected by location.  Lease variations for Self Care are charged at $40,000 per unit, which may include two or three bedrooms. 

The specific fee is based on the market price charged to move into one of these high care units. Lease variations for High & Low Care beds when included in a retirement complex are charged at $10,000 per bed, based on recent sales data.

Other charges in Schedule 1 are also unaffected by location. These other charges (other than item 14 – “removal of association”) are also based on a charge per unit basis (eg charge per extra dwelling or per each lease being consolidated) subject to any specified thresholds.  However, these other charges are not based on market values or sales data. Instead the fees were determined taking into account the need to recover as far as practicable the ACT Planning and Land Authority’s costs of processing the lease variation, including administration, legal, and information technology costs; and the additional benefit being provided through the variation.
The LVCs for lease variations to which schedule 2 applies (lease variations to increase the maximum number of dwellings permitted under the lease) have been worked out as follows.

The charges in Schedule 2 apply to a chargeable variation to increase the maximum number of dwellings permitted under the lease.

The LVCs for schedule 2 are based on market values.

An average market value for specified residential localities (locality A, B, C etc.) within each suburb was determined.  This was done using recent land sales information and other relevant factors. The boundaries of the residential localities have been drawn so as to ensure as far as possible that the properties within each locality are, in terms of location and geographic features, of a similar value. The boundaries of suburbs are derived from the Territory Plan.

The LVCs are based on land values only and do not take account of improvements to the land.

To overcome market fluctuations, a rolling three year average of market values of land in each residential locality in each suburb is used. The figures to be used from 1 July 2011 have been calculated using a three year rolling average of land values in a particular suburb as at 31 March for each of the years 2008, 2009 and 2010. The final averaged values reflect current market values as at 31 March 2010.

The above methodology for residential land determined the added value associated with current land components of a typical benchmark property, for each land use category by locality in each suburb. The schedules provide the average increase per additional dwelling unit, taking into account the scale of the development.

For each suburb, different values were set for the total number of approved dwellings on a site according to a sliding scale for:
•	2 units;
•	3 units;
•	4 units;
•	5-10 units;
•	11-20 units;
•	21-40 units;
•	41-100 units; and
•	100+ units.

In the above, the value assigned per unit in effect decreases according to the scale of the development.

In 2010 the schedules were prepared by accredited valuers, and reviewed by an independently chaired panel with representatives from the Australian Valuation Office and the Australian Property Institute. The schedules are current for the purposes of the LVC.  

The LVCs for lease variations to which schedule 3 applies (lease variations to increase the maximum gross floor area permitted under the lease for non-residential use) have been worked out as follows.

The charges in Schedule 3 apply to a chargeable variation to increase the maximum gross floor area permitted under the lease to be used for non-residential purposes.

The LVC was calculated using average market values and other relevant property data per square metre of gross floor area (GFA) for each suburb in each Territory Plan zone. The suburbs and zones are as indicated in the attached maps. The calculation is based on market sales transactions relevant to each land use zone, averaged over the last three years.

The boundaries of suburbs the Territory Plan zones are derived from the Territory Plan.  Localities within a suburb have been identified where this was necessary to ensure that as far as possible the properties within each locality are, in terms of location and geographic features, of a similar value.

The figures to be used from 1 July 2015 have been calculated using a three year rolling average of land in a particular land use zone for each suburb as at 31 March for 2013, 2014 and 2015.  The final averaged values reflect current market values as at 31 March 2015.

Under the auspices of the Commissioner for ACT Revenue, the schedules have been prepared by accredited valuers (ACT Valuation Office). The schedules have also been reviewed by a representative of the Australian Property Institute (ACT Division).