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How do change of use charges work in Canberra?

By citizenx - 7 July 2008 3

I have a question. I’m no expert in this area but I was just browsing through a Development Applications at http://apps.actpla.act.gov.au/pubnote/index.asp#F and noticed an application for sub-dividing a lease at 16 Geelong St Fyshwick into 5 separate blocks.

In the document http://203.9.249.2/e-registers/pubnote/pdf/VALUE-200811555-01.pdf the application says that the value of the land before and after sub-division is $1,890,000 which according to that Act at http://www.legislation.act.gov.au/a/2007-24/20070927-33748/pdf/2007-24.pdf would mean no change of use charge. However http://www.allhomes.com.au/ah/ah0089?appid=40972 shows that the land was sold on 9-Sep-2005 for $700,000 and the now sub-divided land is currently on sale at http://www.allhomes.com.au/ah/ah0073?slid=167212705 with the following text:

Two units remaining of 330sqm (approximately) at $595,000 (plus GST) and 445 square metres (approximately) at $800,000 (plus GST).

This works out at approximatly $1800 per square metre. As the original block was 2796.3 square metres, it would indicate a value of approximate $5 million. Therefore the improved value would be approximatley $4 million or so, and therefore attract a change of use fee of approximatly $3 million.  Of course these calculations are rough but show my point.

I’m not suggesting anything wrong has been done, and I’m sure there is a good explanation but I am just curious.

What’s Your opinion?


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3 Responses to
How do change of use charges work in Canberra?
heinous 7:37 pm 08 Jul 08

Thanks graham.

Why don’t they just scrap the charge then if nobody pays it?

S4anta 1:16 pm 07 Jul 08

Two words: Crown Land.

10 bucks this is related to the long stay caravan park being turned into a monument for the bearded three legged Fred Nile spotted toad.

les 11:33 am 07 Jul 08

i think the key is that the use hasn’t changed – ie the provisions of the lease to allow for particular activities hasn’t changed, they have simply value-added by subdividing. no different to getting a vacant block and building a big house on it… value goes up, the use is different but according to the lease it hasn’t changed. there’s a fact sheets on actpla’s website but i don’t know how to link http://www.actpla.act.gov.au/topics/design_build/finances/cou_charge

of course i may be wrong… haven’t actually looked in detail at the DA you linked to…

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