Cairns Regional Council tenant tax: Councillors for and against new investment property rates category
More councillors have declared they oppose a proposed new rating category on investment properties but a handful of fence sitters will ultimately determine the fate of the controversial “tenant tax”. Tell us what you think.
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The scorching gust of public backlash against Cairns Regional Council’s proposed new rating category on investment properties, colloquially referred to as the “tenant tax”, has blown some councillors off the fence, with each now stating their position on the matter.
Three elected representatives have firmly expressed their opposition and one has expressed concrete endorsement to the motion due to be voted on in next year’s budgetary meetings.
The debate however is likely to be swayed by those sitting in the centre, with six councillors still sitting atop the fence stating they will continue listening to the public before deciding.
Here’s each councillor’s current position on the proposed investment property rate rise.
Mayor Bob Manning
Position: On the fence
The Cairns mayor has so far sailed a delicate course between responding to public outrage and keeping his powder dry.
On November 19 in the Cairns Post he apologised for any confusion caused by the council’s early communication efforts and said no decision would be made on the matter “without full and open transparency”.
But that apology was by no means a disendorsement of the policy idea as Cr Manning said the council was still gathering necessary information.
“The messaging probably didn’t hit the mark … you haven’t then got everyone consistent on it,” Cr Manning said.
“Our budget was passed unanimously … I’m in favour of us getting the information we said we were going to get, we’ll then be in a position where we can make a decision that’s fully informed.
“I’m not in favour of people expressing views now as if there’s an election. We’re supposed to be working for the people rather than trying to get them to fall for your line.”
Division 1 Brett Moller
Position: On the fence
Cr Moller previously penned an opinion piece published by the Cairns Post that gave his personal justification of the need for a new rating category on non-principal place of residence (N-PPR).
But the Division 1 councillor is still considered to be fence sitting on this issue; he said he had publicly advocated for community feedback from all impacted property owners and residents.
“Good decision making requires a good process that provides for good discussion and debate, so (the council) is fully informed when it comes time for a decision to be made,” Cr Moller said.
Division 2 Rob Pyne
Position: In support
Cr Pyne said he would vote in the affirmative for the new rating category if the council held a vote on the matter today, having previously expressed his support in June.
The Division 2 councillor said if this motion wasn’t carried, the revenue required by council would become the burden to bear for all property owners.
“I’m trying to advocate for people who don’t own investment properties,” Cr Pyne said.
“My position is you own a house for two reasons: shelter or profit. I think we should support those in the first category.”
Division 3 Cathy Zeiger
Position: Opposed
Cr Zeiger said she had been opposed to this motion “right from the start” and would vote against it if the council held a vote on the matter today.
The Division 3 councillor said the council should be encouraging more investment and rental opportunities in the current economic climate.
“We’re in the time of a housing and rental crisis,” Cr Zeiger said.
“It’s a terribly inequitable tax. If we need to raise more revenue, I think it should be across the board.
“Hopefully we see a change to this policy idea.”
Division 4 Terry James
Position: On the fence
Cr James was the first to put an estimated price on a possible new rating category, saying in October the cost to owners of investment properties could be as little as “half a takeaway coffee per week”.
He has not, however, said which way he would vote on the matter but said the issue was just one line item among many to consider in preparation for the council’s budgetary discussions in the new year.
“No doubt councillors are feeling the pressure – they’ve got tough decisions to make,” Cr James said.
“With inflationary pressure, the council and its budget are in the same situation as mums and dads with their personal budgets. We’ve also got to look where we can cut back … that’s in the mix.”
Division 5 Amy Eden
Position: Opposed
Cr Eden said she would vote against the new rating category if the council held a vote today.
The Division 5 councillor informed the public of her position on November 20 in a statement that read: “I do not support the proposed (N-PPR) rate hike, aptly known as the ‘tenant tax’, and I will be your voice at the table”.
“At this time, for our community, it’s not the right time or fit,” Cr Eden said.
“I’m so encouraged people have spoken up. We best represent when we know the sentiment of the community.”
Division 6 Kristy Vallely
Position: On the fence
The Division 6 councillor was perhaps the most reticent on the matter and said the council was in the process of discovering public opinion.
“I don’t have a solid position on it,” Cr Vallely said.
“We’re getting feedback right now.”
Division 7 Max O’Halloran
Position: On the fence
Cr O’Halloran said he had not made his mind up on the new rating category and emphasised it was just a possibility at this stage.
The Division 7 councillor said he received very few items of feedback on the matter but welcomed more from his constituents.
“You've got to listen. Don’t form an opinion before you’ve got all the ammo,” Cr O’Halloran said.
Division 8 Rhonda Coghlan
Position: On the fence
Cr Coghlan said she supported the idea of a new rating category but the vote on the matter was “too far away” to form an official position.
Although she supported public feedback, she said she was surprised by the weight and sentiment of voices that had already responded to the proposed change.
“The Douglas and Cassowary Coast councils implemented this kind of change with small rate increases and we never heard ‘boo’ from anyone,” Cr Coghlan said.
“I can see a reason for (the change).
“People expect the same amount of services with little to no rate rise. That’s getting harder to do.”
Division 9 Brett Olds
Position: Opposed
Cr Olds previously called the idea for a new rating category “inequitable” and reaffirmed his opposition to the motion by saying he would vote “no” if the motion went before council today.
The Division 9 councillor has perhaps so far been the most vocal in dissent and said the whole proposal has “gone down like a fart in an elevator”.
“This isn’t a backflip … there’s nothing wrong with readdressing,” Cr Olds said.
“We set out to look into it and got a feel for how the public were thinking. You’ve got to get all the information before you vote.”
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