Industry consultation to begin on codification of Change of Use Charge

The ACT Government has announced the appointment of a local consulting firm to develop a codification model for the Change of Use Charge which is payable by developers wanting to convert a lease from one use to another.

ACT Treasurer, Katy Gallagher MLA, said the Government had committed to codifying the charge in response to industry concerns about the degree of uncertainty in charge determinations, and to avoid unnecessary delays in development approvals.

“Codification will improve efficiency and transparency in the system and is just one more way we can support investment in the Territory,” Ms Gallagher said.

“I’m pleased to announce that local firm Macroeconomics.com.au has been engaged to develop the model. The firm has extensive experience in providing high end policy, modelling and forecasting services to business, the community sector and governments.

“The consultant team will be led by Professor Des Nicholls from the ANU. Professor Nicholls has an extensive understanding of the Territory’s leasehold system and the betterment charge.

“The Government has committed to consulting industry groups during the development of the new codification model and a discussion paper will be released shortly to get this process underway.

“Industry groups will be able to provide feedback and comments on the proposed codification framework and approach, and a formal industry consultation period will be held early in the new year,” Ms Gallagher said.

In the 2009-10 Budget, the Government also reduced the Change of Use Charge rate from 75 per cent to 50 per cent for one year pending codification. This initiative was designed as a timely and short term measure to support investment and stimulate economic activity in the Territory during the economic downturn.

The ACT Government is also providing a two year moratorium on fees for late commercial developments in light of the circumstances in credit markets and the economy.

“This Government is listening to industry and will continue its efforts to streamline the planning system to cut red tape and support local building jobs,” Ms Gallagher said.

The new codification model is expected to commence on 1 July 2010.

21 November 2009