The ACT Government announced a recovery package for the construction sector to boost activity after the impact of COVID-19. It aims to encourage projects that are able to progress to commence construction by 31 March 2021.
There is a Lease Variation Charge Remission Package available that reduces the Lease Variation Charge by up to 50%, with a limit of $250,000.00 for developments that require a lease variation.
The remission package applies:
👉🏻 to any combined lease variation and design and siting development application, provided it has not yet been paid in full or via deferred payment scheme
👉🏻 where LVC is paid from 25 June 2020 to 23 December 2020 inclusive.
👉🏻 for projects where construction commences by 31 March 2021, regardless of DA lodgement or approval
The remission does not apply to projects that commenced construction before 25 June 2020.
The remission must be administered through the deferred payment scheme and the right to the remission is contingent on construction commencing by 31 March 2021.
So, how do you get the remission?
1. You must have a DA with both a lease variation and a design and siting element
2. Your DA may approval may already be in effect as at 25 June 2020, but the DA cannot be expired
3. You must apply to enter the deferred payment scheme by 23 December 2020
4. You need to have your LVC determination by no later than the first week of December 2020
5. Your project must commence construction by 31 March 2020, which means a “substantial activity” such as demolition, earthworks or laying of a slab
If you think you are eligible, you should apply as early as possible as the determination can take time.
We’re not just award-winning lawyers… Louise is also an award-winning property developer, and Canberra projects are our bread and butter. If you need guidance on this emerging concession, Contact Us Now. We’re at your service.