Gold Coast council rate hikes: ‘Nonsensical’ changes slammed
A leading business figure has slammed council’s massive rates hikes for unit owners, saying its formula seemed ‘plucked from the air’. Read her full comments.
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The head of the state’s peak real estate body has slammed Gold Coast Council for imposing massive rate hikes on high-rise unit owners, saying the “nonsensical” tax appeared to be based on a formula “plucked from the air”.
Owners of the units were stunned last week to discover that their rates were being hiked by up to 50 per cent, with those on the highest floors taking the biggest hit.
Council said the change was to “ensure fairness” for ratepayers – a suggestion dismissed by REIQ boss Antonia Mercorella.
“This is an arbitrary way of raising rates masked as creating greater equity,” Ms Mercorella said.
“It’s concerning when you consider we’re all hoping that greater density by ‘building up’ will be part of the solution to our state’s housing crisis.
“People are choosing apartment living over freestanding houses largely due to greater affordability and access to shared facilities.
“They would never have guessed that buying on the 21st floor as opposed to the 20th floor, for example, would come with ongoing penalties.”
Ms Mercorella said the “unexpected” and “unfair” rate hikes were not justified given unit owners often placed less demand on council services than other ratepayers.
“It’s nonsensical for a council to assign a derived value capture for views. Views are not public infrastructure that the local government provides which they can seek a return on investment – it’s the natural environment,” she said.
“If anything, given apartments share facilities, they are often more efficient and less taxing on council services such as roads, sewage, water and rubbish collection.
“We caution councils that unexpected and unfair rate hikes based on formulas plucked from the air can erode the trust and confidence of buyers and the homeowners who are your constituents – property owners are not a bottomless money pit.”
The rates hike has also been slammed as a “money grab” by Unit Owners Association of Queensland president Mike Murray. While Strata Community Association Queensland general manager Laura Bos said it “beggared belief” council would impose it amid a housing crisis.
Mayor Tom Tate in 2013 ran a campaign to overturn a similar ‘View Tax’, calling it “unfair”.
A council spokeswoman said 12,209 high-rise units were included in the new rate categories. The spokeswoman said the surprise change was to ensure “fairness and equity” for all ratepayers.
“This change ensures unit owners are charged fairly based on the effect that unit size and floor level has on a property’s value. The previous method did not take these factors into account. For example, under the previous method a 1st floor high-rise principal place of residence unit may have paid the same general rates as a 40th floor penthouse,” they said.
“This change will also bring rates in line with the method used for other units that are permanent or short-term rentals.”
Originally published as Gold Coast council rate hikes: ‘Nonsensical’ changes slammed
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