Credit Union Community CPS partners with ACT Government in nation’s first Land Rent Scheme
23 June 2009
A desire to provide affordable housing for all Australians has driven leading credit union, Community CPS Australia to partner with the Australian Capital Territory Government in delivering the country’s first Land Rent Scheme.
The Scheme, a key recommendation of the Government’s April 2007 Affordable Housing Action Plan, will assist low income earners in achieving their dream of home ownership by offering home loans for houses built on land rented from the Government.
While the Scheme is open to all, people with an annual income of $75,000 or less will receive a concessional rate on their land rent payment. The Scheme will initially apply only to land released by the Land Development Agency, on which single residential house blocks can be built.
Louise Petschler, CEO of Abacus, the industry body for credit unions and mutual building societies, said this initiative is a great and practical step forward to help those struggling to own their own home.
“This timely initiative is an excellent example of the way Community CPS focus on their members and communities. We hope many people and families can benefit from the Land Rent Scheme, which is the first of its kind in the country,” Ms Petschler said.
Community CPS Deputy Chief Executive Officer, Robert Keogh said the credit union would have key staff available to discuss the Scheme with interested parties - and provide information about how the organisation can assist potential land renters - from Wednesday (24 June).
“As a mutually-owned organisation, Community CPS is committed to serving the communities in which its members live and work,” said Mr Keogh.
“Australia’s recent history of skyrocketing house prices has meant that many individuals and families have had to push aside their desire to own their own home - instead remaining in a cycle of rent, paying escalating fees to more financially established private landlords.
“By partnering with the ACT Government, we hope to work with our members to help them recapture their dreams.”
Mr Keogh said the partnership, announced by the Government today, was a positive move designed to assist everyday Australians. If the Scheme was successful in the ACT market, he said Community CPS would consider working with governments in other jurisdictions to roll similar plans out across the country.
“This Scheme is breaking new ground. We see it as a template for housing affordability and have committed our support for the long term,” said Mr Keogh.
Under the Scheme, households will be required to pay the Government rent, calculated on the unimproved value of the block of land. Houses will require to be constructed within two years of the lease being granted and home owners will then either rent the land on an ongoing basis, or purchase it from the Government at a later date. The Government's approach offers flexibility to homebuyers, who are able to phase their entry into the housing market.
For more information:
Pamela Eldridge
Media Adviser – Public Affairs
02 8299 9024, 0423 843 790
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
