Property advocate wants State Government to cap council rates

AUSTRALIA’S leading property advocate wants the Tasmanian Government to cap local council rate hikes to reduce ratepayer pain statewide.

Brian Wightman is the Tasmanian Executive Director of the Property Council of Australia. Picture: File

AUSTRALIA’S leading property advocate wants the Tasmanian Government to cap local council rate hikes to reduce ratepayer pain statewide.

Under a new plan from the Property Council of Australia, any council rate rises would be subject to a government-regulated cap by an independent regulatory body.

The council’s state executive director Brian Wightman says variances across municipal boundaries are causing unfairness­ and inequity for residents­.

“Tasmanian ratepayers deserve better, as the cost and scope of service delivery shouldn’t vary in a manner which creates unfairness and inequity across council boundaries,” Mr Wightman said.

“The State Government needs to show leadership and tackle the quality, quantity and cost of services across municipal boundaries. It is obviously a time for more accountability which the State Government can mandate.”

Mr Wightman called for the Government to introduce an independent regulatory body, modelled on NSW’s Pricing and Regulatory Tribunal or Victoria’s Council Performance Reporting by Local Government.

He is also encouraging other Tasmanian local government areas to follow the lead of Clarence City Council and Brighton Council which have limited their rate hikes to the CPI level of 2.3 per cent.

“Yet again, we have clear examples of some councils maintaining CPI increases, while Kingborough Council officers tried 8.8 per cent but after being howled down opted for 4 per cent.

Last week, the council has approved a 4 per cent rate increase despite a recommendation by council officers for an 8.8 per cent rise.

Mayor Steve Wass said the rate increase would cost ratepayers on average $1 extra per week per household, depending on the capital value of the property.

Mr Wightman said any Tasmanian council choosing to increase rates beyond CPI should be required to deliver a statement of reasons to rate payers to justify its decision.

“If Tasmania is serious about kickstarting the economy, reducing the cost of living, and improving conditions for business, it must act urgently to reform the local government sector,” Mr Wightman said.

He said the Property Council said the Department of Premier of Cabinet should be resourced to ensure that ratepayers were provided transparency rate-setting decisions, and to require any increases to be linked to improvements in service delivery.

A Hodgman Government spokesman said the Liberals were taking action to reduce cost of living pressures for Tasmanians, including the capping electricity prices rises and a proposal to take control of TasWater.

“While we have no plans to cap rates, we would encourage councils to also take action on cost of living pressures, and set their rates as low as possible,” the spokesman said.