Name of the Organization : ACT Revenue Office
Type of Facility : Applying For Land Rent
Country : Australia
Website : http://www.revenue.act.gov.au/home-buyer-assistance/land-rent-scheme
Applying For Land Rent :
The Land Rent Scheme is part of the ACT Government’s Affordable Housing Action Plan. The Land Rent Scheme gives a lessee the option of renting land through a land rent lease rather than purchasing the land to build a home.
Related : Australian Capital Territory Office Over 60s Home Bonus Scheme : www.statusin.org/7012.html
The Land Rent Act 2008 (external site) is administered under the Taxation Administration Act 1999.
Under the scheme, purchasers of a single dwelling residential block (previously unleased land) sold by the Land Development Agency (LDA) have the option of applying for the crown lease to be issued as a land rent lease. The advantage for potential lessees in taking up this option is the reduction of the up-front costs associated with owning a house. That is, lessees will not need to finance the cost of the land, only the costs associated with the transfer of the land (such as duty) and the construction of the home.
Land rented under a land rent lease is subject to payment of an annual land rent charge. In addition, the lessee will be liable to duty on the grant of the land rent lease, rates, and, if applicable, land tax.
Duty is payable on the land rent lease on the same basis as applies to the grant of a nominal crown lease. The dutiable value is not reduced by virtue of the lessees taking a land rent option.
Applicants for a land rent lease are encouraged to seek independent legal and financial advice on the Scheme.
For further information on the Land Rent Scheme see the Land Rent Leases and Duty Liability Information Sheet [RTF, 80Kb], [PDF, 419Kb].
Changes to the Land Rent Scheme :
As of 1 October 2013, entrance to the Land Rent Scheme is restricted to low to moderate income households eligible for the discount land rent rate of 2 per cent. The standard 4 per cent rate of land rent will no longer be available to new entrants to the Scheme (that is, entrants who obtain a land rent block where the land rent Crown lease is first granted under a contract entered into on or after 1 October 2013).
All lessees who are already in the Scheme prior to 1 October 2013 will be unaffected by these changes. Those lessees who exchanged contracts with the Land Development Agency for a land rent block prior to 1 October 2013, but have not yet settled on the purchase, are considered to be pre-1 October 2013 entrants to the Scheme.
Participants already in the Land Rent Scheme, where the initial Crown lease was first granted under a contract entered into prior to 1 October 2013, are not restricted in any subsequent (secondary) transfer of the lease. However, for land rent Crown leases first granted under a contract entered into on or after 1 October 2013, any subsequent (secondary) transfer of that lease must be to another purchaser who meets the determined criteria and is eligible for the discount rate of land rent.
If a lessee who has settled on a land rent block converts the land rent lease to a nominal rent lease (either at the time of on-sale or earlier), the restriction on transfer will not apply.
Applying for Land Rent:
Before settlement on a land rent block, applicants must provide the ACT Revenue Office with an Application for Discounted Land Rent together with evidence that the total gross household income for the previous year is below the relevant threshold amount.
Applicants for a land rent block must also attend a CIT information session (external site) (see below for details). Once applicants have attended this course, they must submit the Acknowledging Attendance statement to the LDA. For land rent block availability, sales events and further information, please contact the Land Development Agency