Councillor Brooke Patterson clashes with Mayor Tom Tate on who gets rate discounts

Councillors have clashed on rates charges in a bitter budget debate that contrasted the treatment of Bunnings and Pac Fair with Gold Coast pensioners. Read the inside account.

It’s the big budget debate. Should big retail players like Bunnings and Pacific Fair get a larger dollar discount on paying rates earlier than a pensioner in a unit?

Southport’s outspoken councillor Brooke Patterson lit the fuse on an argument simmering in the background at special budget meetings. Mayor Tom Tate made his position clear.

The Mayor’s election promise was a 10 per cent discount for early payment for everyone.

Ms Patterson argued that when residents heard that they understood it to mean “if you own a home on the Gold Coast, we give you a ten per cent discount on your rates” for prompt payment.

“They don’t expect that Bunnings gets that same discount, or Pacific Fair get that same discount, or someone who is able to own 50 investment properties gets that same discount,” she told councillors.

“Or a foreign investor who has someone staying in their property gets that discount. They think it is there to serve the residents who make this city.”

Councillor Brooke Patterson clashed with Mayor Tom Tate. Picture: Glenn Hampson.

The Mayor fired back that to “increase rates by stealth” to one group of ratepayers was “something I look dimly on”.

“Unless you promise it at the election to do that, it hits people who are going to cop it, it blindsides them,” he said.

How much do the big players miss out on paying through the discount? Those commercial outcomes were not revealed, but sources suggest it ranges from $10,000 to $100,000.

Deputy Mayor Mark Hammel was more blunt than the Mayor in responding to Ms Patterson.

“I couldn’t agree with Councillor Patterson any less – completely at odds with her,” he said.

He estimates most of the 76,000 businesses in the city are either medium or small operators.

Colleagues like Shelley Curtis and Bob La Castra agreed – some of these business ratepayers are fish and chip shop owners who might cut staff if the discount is removed.

Happier times – Councillor Brooke Patterson and Mayor Tom Tate.

But here is where the divide occurs, in a budget to be handed down on Friday which continues to cause more angst among councillors than any other in recent years.

Veteran councillor Peter Young wants a “careful analysis” of the data on the impact of the discount. He and Glenn Tozer joined Ms Patterson by voting against the Mayor’s position.

Councillor Glenn Tozer — rates solution. Picture: Glenn Hampson.

Mr Tozer told your columnist of a possible solution – a simple $200 flat rate for paying rates on time. It would mean big business and property investors who claim their costs as a loss or tax deduction would not be getting such a large gift for paying rates on time.

“With that model, some of the most vulnerable Gold Coasters, on the minimum general rate, would have been provided greater financial relief for on-time payment. In fact, 82 per cent of owner-occupiers would be better off with a $200 flat rate than a 10 per cent discount.

“I think it would be prudent to further review this issue again in future years to help the most vulnerable in our community,” he said.

This will remain the big budget debate. Like death and taxes, it will not go away.

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Originally published as Councillor Brooke Patterson clashes with Mayor Tom Tate on who gets rate discounts