Land Betterment Charge (LBC)
What is LBC (Land Betterment Charge)?
The Land Betterment Charge (LBC) is a charge on the increase in land value when the Government allows land to be used in a more valuable way, for example through planning permission to build more intensively or for a higher-value use. It is about 70% of the increase in value and is administered by SLA under an Act that brought several older land charges together on 1 August 2022.
Key facts
- What it charges
- The increase in land value from planning permission or lifting of land title restrictions
- Rate
- About 70% of the enhancement in land value
- In force
- Land Betterment Charge Act, from 1 August 2022
- Consolidated
- The Development Charge, Temporary Development Levy and Differential Premium
- Administered by
- SLA; URA makes planning decisions and the Chief Valuer sets the rates
- How it's worked out
- Mostly from a Table of Rates by location and use, updated every March and September
- Leases of 99 years or less
- Adjusted using the Leasehold Table of values as a share of freehold
As of 6 Nov 2026. Source: SLA, URA.
How the LBC works
When URA approves a planning application that lets land be used more intensively or for a more valuable use, the land becomes worth more. The LBC captures most of that increase for the State.
- Planning permission is granted, for example to raise the plot ratio or change the use.
- The enhancement in land value is worked out, usually from SLA’s Table of Rates for the site’s location and approved use.
- The LBC is about 70% of that enhancement.
- For land with 99 years or less left on its lease, the charge is adjusted using the government’s Leasehold Table, which values a remaining lease as a share of freehold value. See lease decay.
Example
A site’s value rises by $10,000,000 after URA approves a higher plot ratio. These figures are for illustration.
| Item | Amount |
|---|---|
| Enhancement in land value | $10,000,000 |
| LBC at about 70% | About $7,000,000 |
| Value gain kept by the owner | About $3,000,000 |
If the site had 60 years left on its lease, the charge would be adjusted with the Leasehold Table, which puts a 60-year lease at 80% of freehold value.
Common mistakes
- Ignoring LBC in redevelopment plans. At about 70% of the value increase, it can be a large cost.
- Using an old Table of Rates. Rates are updated twice a year, in March and September.
- Thinking it’s new. The principle existed before; the 2022 Act brought the older charges under one framework.
Frequently asked questions
Who pays the LBC?
The landowner by default, but another party, such as a tenant, can take on the liability by giving SLA proper notice.
Why does the LBC matter in en bloc sales?
A developer buying an old estate to rebuild it more intensively may have to pay LBC on the higher plot ratio or new use, which affects how much it can pay owners.
Can the LBC be worked out by valuation instead of the table?
Yes. Most cases use the Table of Rates, but you can opt for a spot valuation, and it is used where no suitable use group in the table exists.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.