What Do the New Planning Rules Mean for Your Canberra Property?

Yes, you can sell a newly created block without constructing a dwelling on it in the ACT, but there are conditions.

Under the ACT planning rules, a block subdivision allows a residential block (RZ1–RZ5) to be subdivided without first building the new dwelling/s. This means you can create a new vacant residential block and sell it. However, the subdivision approval must show that a compliant dwelling could be built on each new block.

If the newly created block remains undeveloped, the new Crown lease will include development covenants requiring the construction of a dwelling within a specified timeframe. In addition, Minister’s consent may be required before transferring (selling) the Crown lease if the dwelling has not been constructed.

Reference:

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

• The Territory Plan 2023 determines whether a dual occupancy is permitted on an RZ1 property.
• Under Part E – Zone Policies, E1 Residential Zones Policy, the RZ1 land use table identifies multi-unit housing as a permissible use.
• While the land use table does not specifically refer to “dual occupancy”, Part G – Dictionary defines dual occupancy as a form of multi-unit housing.
• Therefore, dual occupancy is considered a permissible form of development in RZ1, subject to compliance with the applicable Territory Plan assessment requirements and approval under the Planning Act 2023 (ACT).

Reference: Territory Plan 2023 – Part E, E1 Residential Zones Policy (Land Use Table) & Part G Dictionary (definitions) – https://www.legislation.act.gov.au/ni/2023-540/Current

Residential Zones Policy Land Use Table permits secondary residence for residential zones. The proposal must also comply with the relevant assessment requirements and obtain any required approval under the Planning Act 2023 (ACT).

Reference: Territory Plan 2023 – Part E, E1 Residential Zones Policy (Land Use Table) – https://www.legislation.act.gov.au/ni/2023-540/Current

Unit titles can be created when a residential development can be legally divided into separate units and common property through the registration of a Units Plan under the Unit Titles Act 2001 (ACT).

This generally applies to developments such as:

• apartments (Class A units), where units are defined by building boundaries such as walls, floors and ceilings; and
• townhouses or dual occupancy developments (Class B units), where each dwelling can be separately identified.

The development must have:

• at least two units;
• areas of common property shared by the owners; and
• a registered Units Plan that defines the unit boundaries and ownership interests.

Reference: Unit titles – City and Environment Directorate – Planning

To work out the maximum development potential of an RZ1 property, the ACT planning system requires several planning documents to be considered together. First, confirm which planning rules apply to the property. Then check the Residential Zones Policy (E01) to understand what types of development are allowed. Next, use the Residential Zones Technical Specifications to find the detailed rules, such as building height, setbacks, and site coverage. After that, check the District Policy for any additional local requirements. Finally, consider the property’s own characteristics, such as its size, shape, easements, heritage status, or environmental constraints. Looking at all of these together provides the most accurate assessment of what can be built on the property.

Assessment Methodology:

• Check the planning rules – Confirm the property’s zone and identify any planning rules that apply to the site.
• Read the Residential Zones Policy (E01) – Check what types of development are allowed and the general planning requirements.
• Check the Technical Specifications – Review the detailed building rules, such as height limits, setbacks, site coverage, and landscaping requirements.
• Review the District Policy – See if there are any extra local planning requirements for the area.
• Look at the property itself – Consider the block size, shape, easements, heritage, environmental issues, and any other site-specific constraints.
• Put everything together – Use all of this information to work out the maximum development that complies with the ACT planning rules.

Reference: Territory Plan 2023 – Part E, E1 Residential Zones Policy & Part D – Distric Policies – https://www.legislation.act.gov.au/ni/2023-540/Current, Planning (Residential Zones) Technical Specifications 2026 (NI2026-303)) – Planning (Residential Zones) Technical Specifications 2026

The best way to determine what you can do with your Canberra property is to first understand your block’s rules and restrictions, such as zoning, easements, services, and other planning requirements. These factors help identify which development options are realistic and suitable for your property.

We can guide you through the best use of your Canberra property, but taking the time to understand your block’s unique conditions and restrictions will help ensure you choose a development option that works best for your circumstances.

Reference: ACT Understanding your block – Understanding your block – City and Environment Directorate – Planning