The ACT Planning Strategy, which aims to make Canberra a more sustainable city into the future, will not be achieved unless the government reviews and recasts other policies that will directly work against achieving this outcome, the Property Council of Australia has warned.

The Property Council strongly endorses work done by government to plan for a compact and sustainably efficient city, allowing higher density housing in or close to town and group centres and along transport corridors. It also supports much of the direction taken in the Transport of Canberra policy, released recently, which is closely linked to the draft ACT Planning Strategy.

Property Council ACT Executive Director, Catherine Carter explained the Property Council has long advocated for urban consolidation and infill development in and around key locations for a broad range of well-established reasons. These include the positive environmental, social and economic outcomes that be realised by locating people where they can use existing transport, power and social infrastructure, as well as providing much-needed alternative housing choices.

However, she warned that there will be several major challenges for the ACT Government in achieving these outcomes, and these relate to the over-reliance by government in revenue from land sales in greenfields areas, and a range of taxes, fees and charges which act as major barriers to the development of inner locations.

“There is an inherent disconnect between revenue and planning in the ACT. Reconciling these two objectives is critical in ensuring the ACT maintains its bold policy vision for the Territory and a sustained revenue base,” said Ms Carter.

“The new Lease Variation Charge (LVC) which came into effect on 1 July will, in particular, act as a major deterrent to redevelopment in established locations.

“The LVC structure provides an additional cost disincentive on increasing the number of properties on existing land leases. This is directly in conflict with the concept of urban infill and goes against the ACT Government’s push for 50 percent of future increases in Canberra’s population to be accommodated in infill developments,” she said.

The ACT Government's draft planning strategy will be open for comment until mid December.