The Property Council of Australia has welcomed ACT Chief Minister Andrew Barr's commitment to refocus the Lease Variation Charge (LVC) as a tool to drive housing delivery, affordability, and precinct renewal.
Chief Minister Barr used an address to the Property Council's Capital Region Housing Summit today to outline a suite of LVC reforms that align closely with the organisation's long-standing calls for a fairer, more transparent, and pro-growth system.
Property Council ACT & Capital Region Executive Director Ashlee Berry said the announcement marked the most significant shift in the LVC framework in more than a decade.
"Real movement on LVC is long overdue. A fairer and more transparent system will unlock stalled projects and get more homes out of the ground in the ACT.
"The Property Council has led the charge on fixing LVC because the current system is choking viable projects. If the changes announced today deliver the transparency, balance, and incentives we've been calling for, we'll see more homes delivered and fewer projects dying in the pipeline.
"We're pleased the Chief Minister agrees with the core of our position – LVC should support housing delivery, not obstruct it," Ms Berry said.
The Chief Minister's commitments include:
- LVC remissions for affordable and social housing.
- A new framework for projects delivering contributed assets and infrastructure, particularly in town centres and local precincts.
- Time-limited LVC incentives aligned with Missing Middle reforms, designed to accelerate medium-density housing in priority locations.
"These reforms match what the Property Council has pushed for. If implemented well, they can unlock stalled projects, bring forward supply, and attract private capital back into the system.
"Shifting the Lease Variation Charge from a blunt tax to a genuine housing-delivery tool is a critical step. The commitment to targeted remissions, time-limited incentives and a proper framework for contributed infrastructure is exactly the direction Canberra needs," Ms Berry said.
"We strongly welcome the move to recognise projects that deliver community infrastructure. Rewarding developments that take pressure off the capital program is overdue and will help unlock feasible projects in town centres and local precincts.
"The Chief Minister has opened the door. Now we need the timing and operational detail so Canberra can turn policy intent into real homes on the ground."
