Opposition Leader Elizabeth Lee has outlined a number of housing and planning policy differences. Photo: Ian Bushnell.
Developers will not be limited to building homes of 120 sqm on dual occupancy blocks in RZ1 zones if the Canberra Liberals win government in October.
Opposition Leader Elizabeth Lee marked out this significant policy difference at the Property Council’s ACT Economic Outlook event today (14 March).
She also announced that a Canberra Liberals government would undertake a full review of the contentious Lease Variation Charge as part of a wider review of the ACT tax system, including rates and stamp duty.
The new Territory Plan will allow dual occupancy developments on large blocks over 800 square metres in an RZ1 zone to accommodate a second dwelling up to 120 square metres in size. The developer can then unit-title the second dwelling so it can be sold.
The government also says a stamp duty exemption will apply to the first transfer of unit-titled dwellings on suburban residential blocks (RZ1) for purchases valued up to $800,000 from 27 November 2023 until 30 June 2026.
However, Ms Lee said that arbitrarily restricting a second dwelling on an RZ1 block to 120 sqm was a poor policy.
She also said a Liberal Government would exempt the second dwelling from stamp duty when it is sold for the first time but made no mention of the sale price or time limit.
“We believe that it’s your land, your home and your choice,” Ms Lee said.
“We’re committed to seeing sensible density on our larger blocks in the suburbs to give choice to all the Canberrans who wish to continue living in the community that they know and love, but who want the option of a smaller dwelling with a smaller garden.”
The government argues that limiting the dwelling size will mean more affordable products being offered to the market.
But Ms Lee said later that many property experts had told the party that restricting the size of the second dwelling to 120 sqm was actually not going to do much in terms of affordability when you’re talking about construction costs that have increased astronomically.
“Being able to build a 120 square metre home compared to something [bigger] or maybe even twice its size doesn’t mean it’s going to be half the price,” she said.
Ms Lee doubted this would lead to land owners maximising their investment by building bigger and more expensive homes, saying they would still have to stick to ACT planning rules requiring green space.
She also announced that the Liberal Government would undertake a thorough review of the lease variation charge, how it’s calculated and applied, and its impact on housing accessibility and affordability.
Ms Lee said the industry had told her the Lease Variation Charge, what the government calls a windfall gains tax, was a barrier to new housing.
“While that review is on the way, we will guarantee that no Canberran who has opted to take advantage of the RZ1 changes under the current regime is at a disadvantage,” she said.
She said the government should pull whatever levers it could at the territory level to alleviate the housing crisis.
“Many property people have spoken to us about how regressive the lease variation charge is as a tax and that [its removal] could be more than offset by the potential growth in activity and investment,” she said.
Ms Lee said the Canberra Liberals would have more to say on land zoning and tax before the election, but indicated that everything would be up for review if they won government, including the current tax reform program, stamp duty and rates.
She recommitted to releasing more land for housing, including a feasibility study of developing land in west Tuggeranong.
While welcoming Chief Minister Andrew Barr’s intention to finally bring forward land releases, Ms Lee said there was still no concrete plan.
“When you have a look at what he announced in the Budget review, the $50 million payment to the Suburban Land Agency, it doesn’t come with any tangible targets,” she said.
Ms Lee also said a Liberal Government would prioritise skills, saying the number of apprentices and trainees undertaking training was declining in contrast to other jurisdictions.
“We will prioritise investment in the skills that are needed now for the Canberra of tomorrow and we will focus our support on getting young people job ready, not spending millions of your money on contracts that have no tangible outcomes,” she said in a dig at the CIT contracts affair under investigation by the ACT Integrity Commission.
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