Couran Cove resort unit owners lose thousands after challenging council rate decision

A Gold Coast island resort has lost a court battle for a cheaper rates bill after it was ruled the council’s decisions were reasonable.

A GOLD Coast island resort has lost a court battle for a cheaper rates bill after it was ruled the Gold Coast City Council’s decisions were reasonable.

Island Resorts (Apartments), which owns 70 units at Couran Cove Island Resort, took the Gold Coast City Council to court after it changed the rate category to increase their rate bill by thousands of dollars.

In 2016, the council made the move to change the resort’s category from permanent residents to “itinerant” residents, or tourist.

In the 2019-2020 financial year the minimum general rate for a home for a permanent resident on the island is $1195, compared to $2498 for itinerant residents.

The decision has now been made by a court. Photo: Supplied

This means that instead of paying $83,650 in total for the 70 units, Couran Cove would pay $174,860.

Island Resorts took the decision to the Supreme Court of Queensland, arguing the change in rate category had been unjust.

“(Island Resorts), or the body corporate for the land, provides essential and other services to the properties including water supply, electricity supply, refuse disposal, transport services within, to and from the resort and pest and inspect suppression,” the court documents state.

Island Resort also claim the council did not take into account whether permanent residents would be in the homes.

Couran Cove. Photo: Supplied.

Justice Peter Applegarth dismissed their application ruling in favour of the council.

Justice Applegarth said in his reasoning that it was reasonable for the council to conclude Couran Cove was providing rental accommodation for tourism “which increased demand for the provision of council services”.

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He said Island Resorts had not established the council did not provide any services for the island.

“Apart from the general administration of local government, one of would have thought that the provision of services, facilities and activities on the mainland benefited residents on the island, including tourists …” he said.

Justice Applegarth ruled the resort should continue to be charged rates in line with a short term stay.

He ordered Island Resorts pay the council’s legal costs.