Townsville City Council faces business backlash over 50pc commercial rate hike
Batman – and a prominent Townsville businessman – have sounded the alarm over a huge commercial rate increase. DETAILS
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
Business leaders are scrambling to understand how the Townsville City Council’s latest budget impacts them, after one investor indicated commercial property rate would spike between 20 and 50 per cent.
It is understood that business leaders have asked the council for a meeting and sought clarification about increases to the general rate levy for commercial properties in the budget 2025/26.
Claiming that his property interests would be hit with an up to a 54 per cent cost increase, investor Andrew Watts drew attention to the issue when he donned a Batman suit to protest in front of the Townsville Bulletin’s office last week.
Mr Watt’s concerns were supported by Townsville business consultant Michael Kopittke, who has invested in Townsville for 30 years, with additional property investments in Darwin, Cairns, and Mackay.
Quoting from a report from one of Townsville’s largest property agents, Mr Kopittke said, “50 per cent of commercial properties will have a 20 per cent rate increase, (while) 20 per cent (were) as high as 50 per cent”.
He didn’t believe that the changes impacting business were made clear by council’s communications or its budget documentation, with similar criticism arising from the budget’s stealth near-doubling of parking fines.
“I emailed my councillor on June 24 about my Hermit Park rental, due to 16.9 per cent rates (and there was) no response,” he said.
Mr Kopittke said this was the latest decision to fly in the face of the MOU signed between Townsville City Council and the state government to be a “business friendly council”, and Acting Mayor Ann-Maree Greaney’s pledge in January for a “new start”.
“Their decision making is the opposite by increasing parking by 100 per cent in the CBD … business (rates increased) 20-50 per cent … increasing (residential) threshold increase cap from 10-20 per cent – adding cost for workers whether they own or rent. Their decisions are out of step with the council’s CBD plan and corporate plan.”
Concerned about the culture within the council chambers, he urged Townsville’s councillors to get out of the city and see what was happening in other NQ regions.
“Council needs to re-set, pivot and review these increases. Other regions are not passing on increases as high as 6-18 times inflation. Townsville rates were already higher,” he said.
“If not, Queensland Small Business Commissioner, Minister for Small and Family Business, and Minister for Local Government need to get involved.”
A Townsville City Council spokeswoman said the council used differential rating categories and land valuations were provided by the state as a way of allocating the required revenue across the city.
“Council’s budget has sought to soften the impact of increasing land valuations by reducing the rate in the dollar by 16 per cent. The majority of Townsville businesses fall under the differential rating category of 4-01 Commercial, which will receive this 16 per cent rate in the dollar decrease to help offset the impact of the updated land valuations,” she said.
“The average valuation for the commercial category 4-01 has increased by 50 per cent, 23 per cent higher than the overall average land valuation increase of 27 per cent, which results in higher rate increases.
“The land valuation changes are varied across Townsville which has resulted in a wide range of impacts on general rates, including for example 24 per cent of commercial properties having a rate reduction.”
She said businesses falling under the 4-01 commercial category could have many different land uses, making direct rates comparisons between councils challenging.
A comparison has been performed across nine other councils using the most similar land use type to Townsville’s commercial rating category.
“Townsville category 4-01 commercial properties pay a premium of 1.85 or 85 per cent more than a category 1-principal place of residence with the same land value,” she said.
“This is the lowest across the nine other councils with the average being a premium of 2.72 or 172 per cent more. We have also compared the minimum rate, which is $2318 in Townsville, ranking lower than the average of $2453.”
More Coverage
Originally published as Townsville City Council faces business backlash over 50pc commercial rate hike
Join the conversation
Big man, bigger heart: NQ Cowboy champions students
Giving 110 per cent, supporting teammates, and showing gratitude was some of the advice shared by the Townsville Community Learning Centre’s recently adopted Cowboy. See who stepped up.
Read more
Triple murder accused trial facing more delays
Police are looking to question new witnesses as the murder trial against an alleged triple killer may not start until the new year. This news comes in the weeks before the third anniversary of the horror shooting.
Read more