Under the ACT Planning Act 2023, block subdivision to create two blocks in the RZ1 zone, is no longer permitted. The only mechanism now available is subdivision via unit titling. Under the Unit Titles Act 2001, unit titling is permitted under certain circumstances (minimum block size, etc.), and the payment of at least $40,000 per title. The new owners are required to establish a body corporate to manage the two properties. This is an unnecessarily complex way to run a dual occupancy, and 'puts off' many prospective buyers. and 'developers'
In September 2024, before the last ACT election, ACT Labor's policy More Homes to Build, Buy and Rent 30,00 by 2030 mentioned 'a greater diversity of housing – more townhouses, more terraces and more duplexes on blocks in Residential Zone 1 (RZ1) and other residential zones.' This is what is referred to as 'the missing middle'.
In his 2024–25 Statement of Planning Priorities, Planning Minister Steel referred to 'planning work [which] will support potential legislative changes to enable 'missing middle' options [on]... RZ1 blocks'.
If we wish to encourage increased lower and medium density in the RZ1 (the 'missing middle'), we should re-introduce block subdivision for dual occupancies which meet the criteria now applicable to unit titling.