Costs • Lease Variation Charges

Lease Variation Charges in Canberra

What could the ACT Government charge you to develop your block?

If you’re considering a dual occupancy, unit title, subdivision or second dwelling in Canberra, there may be a Lease Variation Charge (LVC).

The amount can vary significantly — and two properties in different suburbs, or even two properties in the same suburb, may be treated differently.

The first thing we need to check is your Crown lease.

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Start with your Crown lease

The first step to understanding which LVC pathway may apply.

01 / Understanding LVC

What is a Lease Variation Charge?

Most residential land in Canberra is held under a Crown lease.

Your Crown lease sets out what your land can be used for and may also specify how many dwellings are permitted.

If you want to change those rights — for example, from one dwelling to two dwellings — the ACT Government may impose a Lease Variation Charge.

The important part

The charge isn’t determined simply by the fact that you’re building a second dwelling. We first need to understand what your existing Crown lease already allows.
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02 / Your existing rights

What does your Crown lease say?

There are three common situations.

01
Residential use, but no maximum number of dwellings is stated.

A Schedule 1 charge may apply.

02
The lease says one dwelling and you want two.

A Schedule 2 charge may apply.

03
The lease already permits two dwellings.

There may be no LVC for increasing the dwelling entitlement.

This is why we recommend checking the Crown lease before estimating the LVC.

Three common development options

A Canberra block with the main house set back behind the garden and a separate Secondary Residence near the street, sharing one driveway

Secondary residence

A Secondary Residence on your block.

No Lease Variation Charge
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Dual occupancy or unit title

Two dwellings on one block.

LVC depends on your lease
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Subdivision

Create a new block.

Separate charges may apply
03 / Understanding the figures

How much could the LVC be?

There isn’t one standard figure for every property.
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If your lease doesn't state a dwelling number

From 1 July 2026, the Schedule 1 rate for specifying the maximum number of residential dwellings is:
$49,000
per dwelling specified

For example:

If the lease currently allows residential purposes without specifying a maximum number and it needs to be changed to specify two dwellings:

2 × $49,000 = $98,000 base LVC

Depending on the development and eligibility requirements, a separate reduction may potentially apply.

If your lease is currently limited to one dwelling

Where the Crown lease already states a maximum number of dwellings, a different calculation generally applies.

The amount can depend on the suburb or locality and the number of dwellings permitted after the change.

Some examples

Canberra suburb
Base LVC

Greenway

$52,500

Chisholm

$64,500

Kambah

$65,000

Duffy

$84,750

Page

$90,000
Crace
$105,000
Forrest
$346,000
Canberra suburb
Base LVC

Amaroo

$90,000

Kaleen

$90,000

Nicholls

$105,000

Watson

$184,250
Dickson
$196,750

Griffith

$258,750

These figures are examples only. The correct pathway depends on the wording of the property’s existing Crown lease and the development proposed.

04 / Concessions

Could you receive a 50% reduction?

Potentially, yes.

From 1 July 2026, eligible residential developments in RZ1 and RZ2 may qualify for a separate 50% reduction in LVC.

The concession is scheduled to run until 31 December 2030 — but that is the deadline for finishing construction. The deadline that decides whether you get the reduction is development approval before 30 June 2029, eighteen months earlier, and it is the one people miss.

It isn’t automatic. The development has to add one or more homes and be in RZ1 or RZ2, and you have to enter the LVC Deferred Payment Scheme once your assessment notice arrives.

(ACT Government guidance, read 15 October 2026.)

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Example — Chisholm

Base LVC: $64,500

Potential 50% reduction: − $32,250

Potential LVC after reduction:
$32,250

Example — Page

Base LVC: $90,000

Potential LVC after eligible 50% reduction:
$45,000
A Canberra block with the main house set back behind the garden and a separate Secondary Residence near the street, sharing one driveway
05 / Secondary Residence

What about a Secondary Residence?

There’s particularly good news here.

A Crown lease variation whose only effect is to authorise a Secondary Residence carries no Lease Variation Charge. It is not free, though: most Canberra leases say one dwelling, and that wording still has to be corrected before a second home can be built. That is an administrative correction rather than a charge, and it has a cost of its own: $2,637, and it can take up to 100 days (as at October 2026). The time matters as much as the money — it is worth starting before the rest of the project, not after.

No Lease Variation Charge

This doesn’t mean the entire project is free of government fees.

Planning, building approval, infrastructure and other costs may still apply.

It also doesn’t mean you can automatically create a separate title for the Secondary Residence.

06 / Subdivision

What about subdivision?

Subdividing a block is different from unit titling. A block subdivision divides the original Crown lease block into separate Crown lease blocks. How the charge for creating an additional block is worked out is currently in dispute, so we are not quoting a figure for it:
Ask us

However, this may not be the only charge involved.

For example, your project could involve both:

1. Changing the dwelling rights; and
2. Subdividing the block.

We therefore assess the entire proposal rather than simply adding a standard subdivision charge.

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Unit title and subdivision aren't the same thing

This distinction is important.

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Unit title

Creates individual unit titles within a unit title scheme while the underlying land remains part of the one Crown lease parcel.
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Block subdivision

Creates separate Crown lease blocks.

The LVC and other government charges can therefore be different depending on what you’re trying to achieve.

Read it yourself

Our letter to the ACT Government about these charges

We say above that the subdivision method is in dispute and that we will not quote you a figure for it. This is that dispute, in writing. The letter puts five questions to the Minister, including the one that decides what subdividing actually costs: whether the $7,500 subdivision charge and the charge for adding a dwelling are added together, or whether one takes precedence.

It also covers Secondary Residences, older leases with no dwelling limit, leases that already allow a second home, and how the 50% reduction works in practice. It draws on our review of more than 350 Crown leases held for our clients.

Read the letter — PDF

07 / Your property

What could apply to your block?

Rather than trying to work this out yourself from legislation, Crown leases and government tables, start with your property.

Check my Crown lease