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.
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