THE Liberals’ Brendan Smyth has taken umbrage with the idea that developers making huge windfalls from rezoning should pay something back to the community.
“As part of the 2012 ACT Election, the government promised that its LVC [Lease Variation Charge] scheme would raise $100 million for ‘urban development’. Since then, LVC revenue collected has fallen well short of forecast, and this budget is no different. The government is well behind,” Brendan said.
“The 2012-13 ACT Budget stated the LVC would collect more than $26 million during 2014-15. However, last week’s budget downgraded that target to $14.5 million. Again the LVC has underperformed; again it has been exposed as a failed tax.
“There is no doubt that the LVC is stifling infill developments in the ACT and driving construction across the border. It consistently fails to collect targeted revenue but hits Canberra businesses all the same.
“Andrew Barr and ACT Labor need to rethink the LVC. It’s a triple whammy. It hinders development in our city, makes housing unaffordable for families and fails to generate promised revenue intended for ‘urban development’,” Mr Smyth concluded.