Lease Variation Charge reductions for social and affordable rental developments

The ACT Government is reducing barriers for developers and community housing providers to develop more social and affordable housing.

Starting from 2026, if you are a community housing provider or a developer looking to provide affordable rental housing, you may be eligible for a reduction of your Lease Variation Charge.

You pay Lease Variation Charge when you vary your Crown Lease to allow extra development rights, such as to increase the number of dwellings allowed on a block.

What you get

The reduction depends on who owns and manages the development:

• $250,000 per social or affordable dwelling owned and managed by a registered community housing provider
• $100,000 per social or affordable dwelling not owned by a registered community housing provider.

The maximum reduction is the lower of either:

• $10 million per development
• your total LVC liability.

Check if you can apply

To be eligible, your development must:

• expect to complete construction by 31 December 2030, to align with the Government’s housing targets
• include at least 10 dwellings in total
• include at least 15 per cent social or affordable rental housing
• have a Crown Lease variation that allows social or affordable housing.

You cannot count the following dwellings toward the 15 per cent requirement:

• dwellings that must be delivered as affordable, public or community housing under the City Renewal Authority and Suburban Land Agency Act 2017
• dwellings delivered as affordable, public or community housing as part of a grant when land is provided through a direct sale process
• dwellings that have already received ACT Government funding to be delivered as affordable, public or community housing
• if you have already paid your LVC.

Any social or affordable rental dwellings must be managed by a registered community housing provider.

If you are not a registered community housing provider, you must either:

• sell the social or affordable rental dwellings to a registered community housing provider
• enter an arrangement with a registered community housing provider to manage the social or affordable rental dwellings.

Before you apply

1. Discuss your project with us. Contact us by email AffordableHousing@act.gov.au
2. Get required approvals and notices. You need:
   • a Development Application Notice of Decision
   • a Lease Variation Charge Notice of Assessment.

Apply

To apply, email the following to AffordableHousing@act.gov.au:

• details of the development and how it meets the eligibility criteria
• your Development Application Notice of Decision
• your Lease Variation Charge Notice of Assessment.

We'll assess your application and let you know the result by email.

If you're approved

If we approve your application, you will need to complete the steps below to receive the reduction and meet the ongoing requirements.

1. Defer your Lease Variation Charge liability

You need to enter into the LVC Deferred Payment Scheme once you receive your LVC Notice of Assessment.

2. Complete construction by 31 December 2030

You must complete construction and achieve a Certificate of Occupancy and Use for the dwellings by 31 December 2030.

3. Pay any remaining Lease Variation Charge

When you’re ready to exit the LVC Deferred Payment Scheme:

• we will apply the approved reduction to your lease variation charge
• you will pay any remaining lease variation charge
• we will waive any interest accrued during the deferral period.

Contact us

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