The Lease Variation Charge (LVC) is an ACT Government charge on the increase in value that arises from the granting of additional lease conditions. It is based on the ACT’s unique system of leasehold tenure.
In this submission, ACTCOSS’ position on the LVC is that the charge is an important revenue stream and sound public policy in a leasehold system. The transaction price of land should reflect the fact that it is a lease of a fixed term duration and for a defined purpose or purposes, and not freehold with perpetual duration.
That being said, ACTCOSS believes LVC remissions could be used to facilitate affordable housing, particularly on well situated urban renewal sites.
The challenge is to capitalise on the community benefits of the leasehold tenure system without contributing to the complexity or erosion of that system.