Gold Coast Council review on view tax will consider not just land value but capital improvements

A council review is considering making a radical change to how rates bills are calculated for unit owners after huge anger over controversial ‘View Tax’ increases. Full details.

Rates for high rise units could be assessed on not just land values but their ultimate property price under a radical plan being considered by council.

Governance chair Brooke Patterson dropped the bombshell development during her committee’s first meeting of the year, asking Gold Coast City Council officers to confirm they were investigating the change.

The proposed move follows howls of protest over a controversial ‘View Tax’ introduced mid last year, which saw rate hikes of up to 50 per cent for high rise unit owners.

The Governance Committee meeting was told the proposed reform would be considered as part of a major rates review and that any change would require State Government legislation. It also heard that the reform would not be part of the upcoming council budget to be decided in the second quarter of the year.

Council currently gives a rating category to each property but it is only based on how the property is used and the value of its land, not its ultimate value.

Ms Patterson said the Sunshine Coast Council in 2023 had been successful in gaining Local Government Association of Queensland support for law changes allowing “proper evaluation for units as is done for single dwellings”.

“I suppose at the moment we are using tools that are clunky and trying to manufacture that,” she said.

Officers confirmed the possibility the reforms would be part of a report on their review to be presented to councillors either later this month or early next month.

Deputy Mayor Donna Gates said she was concerned ratepayers would think there would be immediate change, where rates were based on capital improvements as opposed to land value.

“Because that would be something the State Government would decide,” she said.

“There would be a whole range of issues associated with that, including cost of inspections and valuations.

“It would be incredibly unlikely that there would be a change in the rating system in that way in advance of our delivery of the next budget.”

Councillors speaking about the rates review at the City of Gold Coast Governance, Administration & Finance Committee Meeting on January 21.

Speaking outside of the meeting Ms Patterson said the intention from the investigation was that in future owners of houses and units, where both were $1 million properties, would be paying similar rates.

“Houses are paying far more for a same value property. The problem is the tools we have to meet that requirement (for the changes),” she said.

Ms Patterson said council’s review would provide feedback to questions raised by concerned ratepayers at her town hall meeting on the View Tax.

Protest campaign leader David Robinson said the View Tax was unfair as it added charges to what was “a minimum rate” already set for unit owners.

Protest marches against the controversial rate rises will take place on February 18 and March 18. Starting 10am, protesters will meet at Surfers Paradise beach opposite Montmartre cafe, at the corner of the Esplanade and Elkhorn Ave, before walking to City Hall.

Mr Robinson said a minimum rate of $1440 was charged last year for unit owners at his Atlantis East building, apart from penthouses.

“The new View Tax is a surcharge on top of that minimum rate. To say it is a fairer system is just a total lie and a furphy, it doesn’t reduce anyone’s rates at all,” he said.

“Council has shown its game plan – keep it small and get it through. It is $7.50 (increase) a week today but it could be $75 a week in the future as this tax can go up yearly. What hidden secrets has this council got for ratepayers living on the Gold Coast into the future?”

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Originally published as Gold Coast Council review on view tax will consider not just land value but capital improvements