Onkaparinga Council to explore possible rate rise for vacant land to encourage development

A council in Adelaide’s south will explore whether to increase rates on vacant land – with more than 2000 parcels of undeveloped private land in its crosshairs.

Private landowners sitting on vacant parcels could face higher council rates in parts of Adelaide’s south in a bid to incentivise development.

Onkaparinga Council will explore a possible increase to vacant private land rates after elected members backed a motion calling for a report on the matter at this month’s meeting.

More than 2000 parcels of undeveloped private land sit within the council area, which councillor Marion Themeliotis said could be put to better use, including addressing the housing shortage.

“Many other councils have already introduced differential rates for vacant land as a way of incentivising timely development,” Ms Themeliotis, who raised the motion, told the chamber at the recent meeting.

“This doesn’t just bring on more homes in the market, it activates neighbourhoods, stimulates construction and ultimately contributes to the local economy and activity.

“This is about a bit of fairness ... and it’s about asking whether those who are sitting on undeveloped land are contributing equally to the infrastructure and services to benefit the land, especially when others are doing their part in the housing community.”

Councillor Marion Themeliotis. Picture: AAP/ Keryn Stevens

Rates across Onkaparinga are already around 20 per cent higher for vacant land, compared to residential, but at a recent meeting staff said in order to scale up that rating a review would be needed to “change the basis of our rating”.

Councillor Dan Platten said he was “very supportive” of the motion.

“I think we all would know a block that we’ve always wondered why it hasn’t been developed or why it doesn’t have a house on,” he said.

“We don’t have a lot of levers in council, rates are one of our biggest and I think it’s fair to ask whether we can use that to promote people to develop the land that they’re holding.”

It comes as council works to develop an affordable housing strategy, which seeks to provide an assessment of housing needs in Onkaparinga, “including affordability, accessibility and diversity of housing options”, a spokesperson said.

Onkaparinga Council office. Picture: Ashleigh Pisani

An LGA spokesperson said amid the ongoing housing shortage, councils were looking at every lever available to unlock supply.

“Adjusting rates on long-term vacant land is one way some councils are encouraging landowners to build or sell, rather than land banking,” the spokesperson said.

“Many councils are also partnering with developers and the State Government to rezone land and plan the infrastructure needed to support new housing.

“These initiatives aim to help more South Australians find a place to call home.”

A report on vacant land rates, which will look at approaches taken by other councils, legal and financial considerations as well as other issues, will be brought back to council in September.

Originally published as Onkaparinga Council to explore possible rate rise for vacant land to encourage development