Hobart City Council allows rates remission for vacant land owners who intend to build

Rates relief is on the way for some owners of residential vacant land, but qualifying for it could mean jumping through hoops. Find out what’s required.

View over Hobart towards the Derwent River in Hobart, Tasmania, Australia

The Hobart City Council will grant a partial rates remissions for some owners of vacant residential land, after their rates were doubled earlier this year.

The council voted in June to charge twice as much in rates for owners of vacant residential land and owners of residential short stay accommodation.

It was hoped the move would influence the rental market and in encourage owners of residential land to develop it for housing.

On Monday, the council voted in favour of a partial rates remission for property owners who intend to develop on their land, on the condition they have planning, building and plumbing permits.

Owners with residential land which cannot be developed would also be eligible for the remission.

“When you have a carrot and stick policy we do need to ensure we have the carrot and if we are wanting to encourage people to develop these under-utilised blocks of land, we need to carry out that side of things as well and not just penalise those that have vacant blocks of land,” Alderman Simon Behrakis said.

Hobart City Council Alderman Simon Behrakis. Picture: Nikki Davis-Jones

But one councillor questioned whether the bar was too high to qualify for the remission.

Louise Elliot suggested land owners only be required to obtain a planning permit.

“I’m nervous around the fact people have to go through planning and building and plumbing to get the rates remission,” she said.

“There’s a lot of money in getting planning alone.

“When you’re building and plumbing you’re a lot further along the track.”

Ald Louise Bloomfield said she was concerned about landowners who sold their properties after receiving permits.

“We’re creating a loophole, we’re not doing what we wanted to do,” Ms Bloomfield said.

“We don’t want to see an extension, and an extension and an extension, we simply want either you build it or you don’t.

“You get a [remission] or you don’t.”

Elected members voted in favour of the rates remission, but the amendment only planning be required was lost.

The council will review its broader rates policies during workshops over the coming months.

Rates remission on the cards for land owners

September 25, 5am

Rates were doubled for owners of vacant residential land in Hobart City earlier this year, but some could soon be eligible for a rates remission.

On Monday the Hobart City Council will vote on whether it will amend its rates policy to allow a partial rates remission of up to $2000 to be granted, on the proviso the land is under development.

The Hobart City Council voted in June to double rates for owners of vacant residential land and owners of residential short stay accommodation, in an effort to encourage owners of residential land to develop land for housing and discourage land-banking.

But after the change came into effect, the council received a number of requests from landowners seeking a rates remission.

“Properties under development, which have received all relevant permits to do so, are being charged the higher differential general rate introduced to encourage the development of vacant land,” a council officer said in a report to council.

“It is therefore proposed that Council introduce a policy that a part rates remission be granted where a ratepayer has indicated a genuine commitment to develop the land for residential purposes.”

It’s proposed properties which have received all relevant permits to be able to develop on their land be granted the partial rates remission.

Owners with residential land which cannot be developed would also be eligible.

If passed, land owners will be able to apply for the remission, which would be decided on by the City of Hobart CEO.

If the remission applied for is more than $2000, the application would need to be approved by the full council, with the limit increasing to $8000.

“There’s a lot of people trying to find a builder, and get a price they can afford to pay,” Hobart City councillor John Kelly said.

Hobart City councillor John Kelly. Picture: Nikki Davis-Jones

“Council have whacked them double the rates.”

Mr Kelly believed the rates remission should also apply to landowners who have reserved their land for green space.

“At the moment we’ve got council concerned about the urban tree canopy,” Mr Kelly said.

“I’ve got land around my residences, I’m on a mission to plant 500 trees … do I sell the land and it be built on and the green spaces be ripped up?”

The council will vote on Monday night.