Option 1 – status quo Efficiency Though initially designed principals of cost recovery, the status quo schedule of fees is outdated and does not accurately reflect costs. This schedule of fees would approximately $25 million of costs from users of the Victorian land registration system. This represents a situation where these users are cross subsidising the general taxpayer. Over-recovery of costs is scored negatively under the efficiency criteria as the excessively high fees send incorrect price signals to users of Land Victoria’s services. However, given that under the base case there are no prices signals at all, Option 1 is still considered to be more efficient than the base case. On this basis, efficiency is scored at +2.5 under this option relative to the base case. Equity From a vertical equity perspective, Option 1 does not have any specific features whereby with greater means might contribute proportionately more than those with lesser means. Nonetheless, when compared with the base case, Option 1 is considered to be more vertically equitable as users of Land Victoria’s services (i.e. those transacting and subdividing land) have a greater capacity to pay for those services than the general taxpayer, which includes individuals on low incomes. On this basis, equity is scored at +5 under this option relative to the base case. Effectiveness From a general perspective, the status quo option is considered to be more effective than the base case as it involves charging fees to collect revenue to the cost of providing the relevant Land Victoria services, rather than charging no fees at all and relying on an alternative, less efficient, funding source. However, this option also involves a high level of over-recovery of costs and is therefore ineffective to a certain extent. On this basis, effectiveness is scored at +2.5 under this option relative to the base case. Calculation of scores the scores assigned for the assessment criteria in each section above and the weightings discussed in Section 4.1, the weighted scores for Option 1 are calculated in Table 4.3. Cost recovery fees – assessment of Option 1 against criteria Criterion Score Weighting (%) Weighted Efficiency 2.5 33 0.83 Equity 5.0 33 1.67 Effectiveness 2.5 33 0.83 Total 3.33
Land Victoria Legal Legal is responsible for providing advice and determinations on legal matters across Land Victoria. Key activities include: Complex transaction legal advice General correspondence advice General litigation advice VGV litigation advice OSGV disciplinary hearing cases General legal advice on Land Victoria projects Legal advice on internal contractual matters Land Victoria Policy Policy is primarily responsible for the preparation and review of formal advice to the Registrar of Titles to assist him in meeting his statutory responsibilities. Key activities include: Ministerial briefs and correspondence FOI requests Land Victoria Business Support Business Support is responsible for providing day-to-day administrative support to other Land Victoria branches. Key activities include: Communications Finance Strategy Budgeting Source: Land Victoria A brief description of the branches and their purpose is provided below, noting that more detail is provided for Land Registration Services as it forms the main cost of delivering services under the Transfer of Land Act 1958 and the Subdivision Act 1988. Land Registration Services The Land Registration Services branch of Land Victoria has five business as discussed below. Registrations The Registrations unit performs a number of statutory registration functions under the Transfer of Land Act 1958 and other legislation. This includes a wide range of land and water registration activities. The vast majority of this activity is in the registration and discharge of mortgages (28 per cent and 29 per cent respectively) and the transfer of land (26 per cent). It should be noted that, although the Registrations unit is responsible for statutory activities outside of the Transfer of Land Act 1958, the Transfer of Land (Fees) Regulations enables fees to be set to recover the costs of these activities. The full list of activities performed by the registrations unit is reflected in the fee schedule included in Appendix D.
Interstate comparison of select fees with high transaction volumes (2014) NSW NT QLD SA TAS VIC WA Title search fee $14.00 (over the counter), $12.40 (LPI Online and website), $7.35 (to information brokers) $21 (account client) $31 (at counter) Current title - $16.45; Historical details of title - $24.15; $17.25 staff assisted; $10.03 accounts assisted; $7.65 to information brokers; $16.54 govt. internet Instrument search fee $14.00 (over the counter), $12.40 (LPI Online and website), $7.35 (to information brokers) $21 (account client) $31 (at counter) $31.95 $6.75 staff assisted; $3.04 accounts; $2.44 to information brokers; $6.45 govt. internet Plan search fee $14.00 (over the counter), $13.25 (LPI Online and website), $7.35 (to information brokers) Unit Plan only $21 & $31 $16.45 $7.30 staff assisted; $4.17 accounts; $2.44 to information brokers; $6.45 govt. internet Mortgage fee $107.00 $133.00 $157.40 $148 $111.00(paper); $87.60(electronic) Discharge of Mortgage fee $107.00 $133.00 $157.40 $148 $111.00(paper); $87.60(electronic) Transfer base fee $214.00 $133.00 $157.40 $148 $135.20(paper); or $111.70(electronic) Caveat fee $107.00 $214.00 $157.40 plus $30.40 per notice $148 $76.90(paper); or $53.50(electronic) Source: Internal analysis conducted by Land Victoria 26 0 50
32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to the boundaries of any land under section 32(c) of the Act Plus for each lot in excess of two Plus for each owners corporation in excess of one Plus for plan supported by a survey Plus for each parcel of land created 762.20 166.20 129.50 375.10 n/a 554.50 n/a n/a n/a 171.40 -27.3 – – – – 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to increase or reduce the number of lots under section 32(d) of the Act 116.50 88.00 -24.5 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to create new lots or new common property section 32(e) of the Act Plus for each lot in excess of two Plus for each owners corporation in excess of one Plus for every plan supported by a survey Plus for each parcel of land created 762.20 166.20 129.50 375.10 n/a 554.50 n/a n/a n/a 171.40 -27.3 – – – – 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to create a new owners corporation under section 32(f) of the Act Plus for each owners corporation in excess of one comprised in the plan 129.50 129.50 88.00 n/a -32.0 – 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to dissolve itself section 32(g) of the Act Plus for each owners corporation in excess of one comprised in the plan 58.30 58.30 88.00 n/a +50.9 – 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to merge with another owners corporation under section 32(h) of the Act 58.30 88.00 +50.9 32AD(1) Lodgement by an owners corporation of a plan for registration by the Registrar to create, vary or remove an easement under section 32(i) of the Act Plus for each lot in excess of two over the easement or conditions is to be created, varied or removed 762.20 166.20 554.50 n/a -27.3 –
Limitation of our work General use restriction This Regulatory Impact Statement was prepared for Land Victoria as set out in the engagement letter with Land Victoria dated 18 March 2015 to undertake a Regulatory Impact Statement for proposed amendments to the Transfer of Land (Fees) Regulations, and the Subdivision (Registrar’s Fees) Regulations. In preparing this Report we have relied on the accuracy and completeness of the information provided to us by Land Victoria and from publicly available sources. The cost recovery and fee analysis contained in the report was conducted by Land Victoria. We have not audited or otherwise verified the accuracy or completeness of the information. We have not contemplated the requirements or circumstances of anyone other than the Land Victoria. The information contained in this Report is general in nature and is not intended to be applied to anyone’s particular circumstances. This Report may not be sufficient or appropriate for your purposes. It may not address or reflect matters in which you may be interested or which may be material to you. Events may have occurred since we prepared this Report which may impact on it and its conclusions. We do not accept or assume any responsibility to anyone other than Land Victoria in respect of our work or this Report.