weekly hansard - Queensland Parliament - Queensland Government

23 Aug 2005 Education (Queensland College of Teachers) Bill 2583
The provisions of this bill will assist remaining residential lessees to achieve outright home
ownership. This is consistent with the original intent of this scheme and the focus of the Department of
Housing on providing contemporary products that meet contemporary housing needs. I seek leave to
have the remainder of my speech incorporated in Hansard.
Leave granted.
Residential perpetual town leases are one of this State’s original home ownership schemes. The leases were issued from 1924 to
1985 as a means of reducing the costs of home ownership for working families. More than 7,000 leases were issued to eligible
home loan applicants over this time. As of 30 June 2005, there were only 262 leases remaining. Of these remaining leases, less
than 30% are held by the original lessees or their descendants. All the original home loan agreements have been finalised.
Consequently the remaining leases continue in perpetuity on a land rent only basis until lessees choose to freehold.
To achieve outright ownership lessees may elect to convert their leases over State land to freehold by paying the purchase price of
the land to the State through the chief executive, Department of Housing.
These amendments give the remaining leaseholders a greater incentive to freehold. Divesting the leases will also reduce the
administrative costs to government of maintaining this leasehold system.
While the divestment strategy includes incentives for lessees to convert it also includes disincentives to remaining a lessee in the
longer term. The freeholding incentives are applied before any disincentive measures are introduced.
Under the proposed amendments, lessees may continue as lease holders, and they may choose when to convert to freehold, as
long as their leases are retained in the existing ownership.
The freeholding incentives provided by the Bill will encourage lessees to convert and make outright home ownership a more
attractive option than continuing to pay an annual land rental to the State.
The Bill provides that, with minor exceptions, from a date to be prescribed by regulation (but not before 1 July 2009), any leases
that remain will automatically convert to freehold upon a change of ownership.
As the Bill is to commence on 1 July 2006 and the automatic conversion provisions not before 1 July 2009, lessees are provided
with sufficient time to consider their options. In the first instance this involves considering whether to take up the freeholding
incentives or to leave conversion of the lease to a future buyer or beneficiary.
The Department of Housing notified lessees in June this year that a strategy for completing the original objectives of the perpetual
town lease program was under development. Lessees were advised this was expected to include a freeholding incentives
package and other changes to promote the conversion of the leases to freehold. Lessees were invited to contact the Department
of Housing for more information. This engagement with lessees will continue throughout this process.
To give effect to the divestment strategy the Bill seeks to reduce the purchase price for the conversion of the leases to freehold. It
does this by basing the purchase price on a percentage of the unimproved value of the leased land. This directly benefits lessees,
as the present system is based on what a person would be willing to pay for the land, as if it were freehold (a market value).
In the first few years of the strategy, additional concessions will be applied to the purchase price, as prescribed by regulation.
On or after 1 July 2009, automatic conversion provisions will apply. These provisions of the Bill provide that following a change of
ownership, the lease will automatically convert to freehold. To secure the costs of converting the lease to freehold a charge in
favour of the chief executive, Department of Housing will be registered over the freehold title. The conversion costs become
payable within 2 years for an ordinary transfer and 5 years where the registered owner is a beneficiary of a deceased lessee.
When these provisions take effect, with minor exceptions, all changes in ownership will cause a lease to automatically convert to
freehold.
This Bill provides the opportunity for the completion of a program under which a group of Queenslanders, who have been on the
road to home ownership for some time, will be able to finally realise that goal.
Mr Speaker, I commend this Bill to the House.
Debate, on motion of Mr Messenger, adjourned.
EDUCATION (QUEENSLAND COLLEGE OF TEACHERS) BILL
First Reading
Hon. RJ WELFORD (Everton—ALP) (Minister for Education and Minister for the Arts)
(12.53 pm): I present a bill for an act to establish the Queensland College of Teachers, to confer
functions on the college including functions about the registration of teachers in Queensland and related
matters, to establish the Office of the Queensland College of Teachers, and for other purposes. I present
the explanatory notes, and I move—
That the bill be now read a first time.
Motion agreed to.
Mr Deputy Speaker read a message from Her Excellency the Governor recommending the
necessary appropriation.
Second Reading
Hon. RJ WELFORD (Everton—ALP) (Minister for Education and Minister for the Arts)
(12.54 pm): I move—
That the bill be now read a second time.
The College of Teachers bill responds to the needs of a modern, changing education system. The
changes contained in this bill represent a major overhaul of teacher registration which will raise