Page 930 - Week 03 - Thursday, 10 April 2014

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Section 298(4) provides that the Planning and Land Authority can grant permission to transfer the lease on certain grounds, including situations where the lease is a holding lease and the transfer is the first sale of newly subdivided land. Clause 12 of the bill amends section 298(4) to remove the requirement for the land to be subdivided.

A holding lease is a lease that is issued to allow for urban development and subdivision. It is a short-term lease which provides for the developer to construct and return public infrastructure to the territory. Currently, the exception for holding leases only applies if there is subdivision involved. Experience has suggested this is an arbitrary distinction and the authority has been informed of cases in which land sales and development have been delayed due to the subdivision restriction.

The use of a holding lease is an unexceptional part of the development and sale of land. When the holding lease is transferred the purchaser takes on the responsibility for the development of the land. There is no practical reason for maintaining the subdivision restriction.

Clause 12 of the bill extends the scope of the authority’s consent under section 298(4) so that it applies to the development of new land even if the proposed transfer is of the whole of the holding lease. In this situation there would be no subdivision involved.

Clause 14 of the bill inserts a new chapter 18 into the Planning and Development Act. This is a transitional chapter which applies to the status of the lease of the University of Canberra.

The University of Canberra lease was granted as an in perpetuity specific purpose commonwealth lease under the Canberra College of Advanced Education (Leases) Act 1977. This commonwealth act was repealed around the time of self-government. The university is, of course, now established under territory law, the University of Canberra Act 1989.

In keeping with the unusual origins and nature of this commonwealth lease, the lease was expressly excluded from standard territory lease administration provisions in the former Land (Planning and Environment) Act 1991 and this exclusion was carried over into the current Planning and Development Act.

The exclusion of the University of Canberra lease from the Planning and Development Act has proven to be problematic. The exclusion means there is no practical way for the lessee to make a lease variation as a precursor to proposed development. From the territory’s point of view there is no workable way to enforce the provisions of the lease.

Given that both the land as well as the administration of the university are now within the regulatory responsibility of the territory, there would appear to be no good reason why the lease should not be subject to the standard lease administration legislation like any other lease.


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