Page 4180 - Week 10 - Tuesday, 21 September 2010
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I would like to take this opportunity to also underline a number of other key features of the bill. As has been previously noted, section 265 of the Planning and Development Act states that the purported sale of a concessional lease without the required consent is of no effect. This provision is at odds with the Land Titles Act 1925, which guarantees the legal validity of purchases registered in the register of land titles. This bill confirms recent judge-made law to the effect that a sale registered in the register of land titles is legally valid. This provision is important for the integrity of the land title system and necessary to ensure that landowners and investors can own, buy and sell with confidence.
The bill also includes provisions to ensure that people can rely on statements in a lease that the lease is a market value lease. If a lease is declared to be a market value lease either at the time of grant or later, then it is deemed to be so for all purposes. This is the effect of item 9 of new part 5.2 of schedule 5 in clause 37. In addition, new section 259B in clause 16 specifically prohibits ACTPLA from making any decision that would have the effect of changing this status.
This legal certainty as to the status of market value leases is also needed to permit buyers and sellers undertaking property transactions with confidence. As I have noted, if the concessional status of a lease is uncertain, the lessee can apply to ACTPLA for a declaration as to its status. The bill makes it clear that in assessing such applications, ACTPLA must declare the lease to be not concessional if the relevant historical evidence is missing, incomplete, unclear or equivocal. In other words, Madam Deputy Speaker, the onus of proof is on the government to establish that a lease in question is concessional. This is one of the features of new sections 258B and 258C in clause 16.
Concessional leases are not the only type of lease subject to sale restrictions. Leases granted by a direct grant process rather than going through market competitive processes are also restricted. Under section 251, such leases cannot be sold during the first five years of the lease without consent. The same issues of clarity and ease of identification apply. The bill makes amendments to address the identification of such leases similar to the provisions on concessional leases. This is the effect of amendments made to section 251 of the Planning and Development Act in clause 6.
Madam Deputy Speaker, in conclusion, this bill makes a number of important interrelated amendments that make it easier to identify whether a lease is concessional or whether the lease is subject to a section 251 sale restriction. These provisions are needed to permit buyers and sellers to transfer property with confidence.
I would like specifically to thank again the Law Society and the Property Council, who have both put considerable time into the review of the exposure draft. The bill is a much better product as a result of their input. The bill also reflects the good work ACTPLA’s staff are doing and I would like to take this opportunity to thank them again for their work. I commend the bill to the Assembly.
Question resolved in the affirmative.
Bill agreed to in principle.
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