Page 3527 - Week 11 - Thursday, 19 September 2013
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Lessees who are transitioning out of the scheme will have the option of converting their land rent lease to a nominal crown lease or of transferring their block to another eligible land rent applicant. Should a lessee return to the discounted eligibility within this two-year period, they may remain in the scheme. However, lessees already participating in the land rent scheme prior to 1 October 2013 will have continued access to both rates should their circumstances change.
It is important to note that these amendments to the land rent scheme will not affect those lessees who are already participating in the scheme, at either the two or four per cent rate. The bill makes it clear that the amendments will only affect those new lessees who enter the scheme on or after 1 October 2013.
Once enacted, these amendments will ensure that the land rent scheme continues to play a vital role in the government’s affordable housing initiatives.
In relation to the matters that were raised in scrutiny report No 11, delivered on 9 September, I note that the committee queried the meaning of an eligible transferee and felt it was unable to locate the definition of this in the bill. In my letter to the committee, and to you as chair, Mr Assistant Speaker, I referred the committee to clause 41 of the bill, which does in fact add that definition to the Land Rent Act 2008.
I note as well that the committee queried the validity of proposed subsection 26A(4) in clause 28 of the bill in light of the High Court judgement in the case of Kable versus the DPP in 1996. The proposed subsection empowers a court to order the forced sale of the subject property by public auction following the loss of lessee eligibility for land rent. The operation of the subsection is governed by the court’s satisfaction as to certain matters set out in proposed subsection 26A(1), which includes those steps that have been taken under proposed section 16AA in clause 23 of the bill.
I referred the committee to the fact that the combined operation of the two proposed provisions means that proposed section 26A is conditional on the issue of a notice from the Commissioner for ACT Revenue following the loss of eligibility for a post 1 October 2013 land rent lessee. Such a notice, issued if a non-eligible lessee fails to convert the land rent lease or sell the subject land, is of course subject to the usual objection and appeal rights in the ACAT and courts, and it is highly unlikely that a court-ordered sale would or properly could be sought whilst the notice is under dispute. I suggest that the combined operation of proposed section 16AA and 26A means that proposed subsection 26A(4) would not substantially impair the institutional integrity of a court in the manner captured by the Kable doctrine.
We thank the committee for its inquiry concerning the validity of the proposed provision. However, the government is content that, in the highly unlikely event of an action under proposed section 26A, a legal challenge concerning this or any other provision in the Land Rent Act 2008 would follow the usual legal procedure. I trust that this information adequately addresses the committee’s requests and concerns. I commend the Land Rent Amendment Bill 2013 to the Assembly.
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