Questions & Answers

What are the requirements for a block subdivision in the RZ1 – Suburban Zone?

A block subdivision allows you to create one or more new blocks, provided the proposal meets the planning requirements.

  • The ACT planning system allows block subdivision in residential zones RZ1 to RZ5, provided the proposal complies with the planning rules.
  • A Development Application (DA) must demonstrate that each new block can accommodate a home that complies with the Territory Plan. This means vacant blocks can be created if it can be shown that a compliant dwelling could be built on each block in the future.
  • The Subdivision Technical Specifications provide guidance on minimum block sizes. For example, in an established RZ1 zone, new residential blocks should generally be at least 350 m².
  • Each new block may require its own separate utility connections and meters (such as electricity, water and other services). Applicants should check servicing requirements and costs early, as these can be significant.

These requirements do not apply to a minor boundary adjustment where no new blocks are created.

Reference: ACT Government – Advisory Note 19: Block Subdivision versus Unit Title Subdivision in Residential Zones –Block Subdivision vs Unit Title Subdivision (Residential Zones)

Last reviewed: 14 September 2026 Information current as at: 14 September 2026

Short Answer

  1. The ACT Government assesses the Lease Variation Charge (LVC) and issues a Notice of Assessment.
  2. The applicant enters the LVC Deferred Payment Scheme to defer payment during development.
  3. The development must be completed and a Certificate of Occupancy and Use obtained by 31 December 2030.
  4. Once the requirements are met, the eligible LVC reduction is applied, and the applicant pays the reduced LVC amount.

Detailed Explanation

The ACT Government first assesses the Lease Variation Charge (LVC) and issues the applicant with a Notice of Assessment specifying the amount payable. Rather than paying the LVC immediately, the applicant may enter the LVC Deferred Payment Scheme, allowing payment to be deferred while the approved development is undertaken. To remain eligible, the development must be completed and a Certificate of Occupancy and Use obtained by 31 December 2030. Once these requirements are satisfied and the applicant exits the Deferred Payment Scheme, the ACT Government applies the eligible LVC reduction, and the applicant is required to pay only the reduced LVC amount rather than the full charge.

Key Point

No minimum block size does not remove the need for planning assessment.

Would you like to know what these rules mean for your property?

Get a Planning Assessment prepared by our experienced planning team.

Back to All Questions