Brisbane ratepayers hit with steepest rates hike in a decade

Brisbane homeowners will be slugged with the biggest rates hike in more than 10 years, but the Lord Mayor insists this budget will help the city’s housing affordability crisis. SEE WHERE THE MONEY’S GOING

Brisbane homeowners will be slugged with the steepest rates hike in more than a decade but Lord Mayor Adrian Schrinner insists his record-spending council budget focuses on the housing affordability crisis crippling the city.

The rate rise is below Brisbane’s inflation rate of 6 per cent, but this will offer little comfort to residents given the soaring cost of living pressures on family budgets.

The average rate increase across the Brisbane City Council will be 4.93 per cent, while those who rent properties on Airbnb and other short stay platforms will face a 50 per cent surcharge on their rates bill.

Mr Schrinner said this brutal hike was aimed squarely at easing the city’s record low vacancy rates, which is a key contributor to Brisbane’s rising homelessness and cost of living constraints.

The rate increase on this portion of investors is similar to a fee applied to commercial businesses, with the mayor warning of further hikes to stamp out short term leasing.

The record $4 billion budget, handed down on Wednesday morning, is short on new major infrastructure projects given the need to prioritise the city’s recovery after the flooding disaster earlier this year.

Brisbane Lord Mayor Adrian Schrinner. Picture: Matthew Poon

From the budget spend, more than 80 per cent will be splashed on improving infrastructure in the suburbs, as opposed to the city centre.

The Mayor asked for those who rent properties short term on websites such as Airbnb, Stayz and Booking.com to self-identify from July 1 with other residents encouraged to dob in neighbours using their homes for this purpose.

Properties leased for less than 60 days a year will be excluded from the hike, dubbed the transitory accommodation rating category, while owners who rent for more will pay a 50 per cent surcharge on their rates bill.

Mr Schrinner said he hoped this would seduce investors on to the long term lease market to address the “chronic shortage” of homes.

“Brisbane is a victim of its own success with our status as Australia’s fastest growing capital city,” he said.

“This situation is impacting a significant number of people so getting owners to return homes to the long term market is an important step.”

“Brisbane has plenty of great hotels with many more under construction, and our suburban streets were never meant to be homes to mini hotels that house different tenants every week.”

People who rent out Brisbane properties for short stays will be hit with higher rates. Picture: Nigel Hallett

Delivering the 2022-23 Budget, Mr Schrinner said his council wanted to keep costs under control amid increasing cost of living pressures on Brisbane’s 1.2 million residents.

Brisbane’s minimum rates will be $818.84 compared to Queensland’s next biggest council - the Gold Coast - where the minimum residential rate will be $1144.43 following a 4.99 per cent increase on Tuesday.

But the 4.93 per cent jump is a significant lift on last year’s 3.75 per cent rise, and is the biggest hike since the 2010-11 council budget.

Council will invest more than $500 million over the next three years on the Rebuild and Recovery program following the February floods that impacted more than 23,000 homes across 177 of Brisbane’s 190 suburbs.

Finance Chair, Councillor Fiona Cunningham said part of the investment ($11.2 million) will go towards implementing all 37 flood review recommendations along with a new $1000 rates rebate for eligible owner occupiers whose homes remain uninhabitable after the February floods.

There is a $1.35 billion investment in infrastructure projects including a fully electric turn-up-and-go transport solution across 18 stations.

The 2022-23 Budget also includes a new Suburbs First Guarantee which will continue to ensure more than 80 per cent of investments occur in Brisbane’s suburbs.

Park and playgrounds across Brisbane’s growing suburban communities will also benefit from a $244 million investment including a $10 million investment in Sun safe suburban playgrounds.

KEY EXPENDITURE

$1.35 billion infrastructure investment in 2022-23

Suburbs First Guarantee ensuring at least 80 per cent of spending occurs in Brisbane’s suburbs

New Transitory Accommodation rating category for short-term rentals

A more than doubling of Brisbane’s drainage budget to $131 million

$35 million investment in footpaths

Ongoing investment in Brisbane Metro, Kangaroo Point and Breakfast Creek green bridges and Victoria Park/Barrambin

Average rate rise of $1.63 a week (4.93 per cent vs current Brisbane inflation of 6 per cent)

Maintain south east Queensland’s cheapest residential rates (Brisbane $818.84 Vs Gold Coast $1144.43)

Full pension rebate increased to $1161