LVC Continues Underperformance
The latest Quarterly Consolidated Financial Report showed the Government’s anticipated $16.3 million take in 2015-16 from the Lease Variation Charge (LVC) has only brought in about $4.4 million to date.
“This is a tax that has raised almost no money and has cost Canberrans hundreds of potential jobs—in its current form, it’s a dud,” says Merlin Kong, ACT Property Council Executive Director.
“With the LVC going into its sixth year, and consistently underperforming even with decreased revised targets in the past, it’s time for the Chief Minister to make structural changes to the LVC.”
“The LVC in its present form stifles development activity, and will continue to undermine the Government’s plans to stimulate urban renewal and density in our city’s town centres, adjoining suburbs, and transport corridors.”
“The Government needs to consider changes to the LVC’s charging methodology, and we’re open to working with Government to develop a more sustainable charge that would lead to an increase in the volume of variations.”
“Options that result in a fairer effective tax payable per lease variation, recognition of the value of improvement, and offsets for demolition costs and offsite works are a good starting point.”
Media contact: Merlin Kong |M 0429 579 972 |P 02 6276 3602 |E [email protected]