‘Greedy’: Perth council hikes rates on vacant blocks to deter land banking

Two former City of Swan mayors have labelled a council decision to hikes rates on vacant blocks by 30 per cent as a greedy cash grab that puts unnecessary pressure on families.

The council vote on February 14 was tied 7-7 over the plan, with the funds to be used to fund more tree planting, before Mayor Tanya Richardson used her casting vote to support it.

The City of Swan is under fire for hiking rates for vacant land by 30 per cent. Credit: Ross Swanborough

Former Swan mayor Mick Wainwright said there was no consultation with affected landowners and no proper analysis undertaken on the impact of such a significant rate rise.

“We have an overheated construction market and a long list of big-name Aussie building companies that have gone bust,” he said.

“This has led to a delay in home construction, which is out of the control of the landowner.

“This increase will unfairly add extra cost and stress for ratepayers through no fault of their own.”

Swan council rejected the 30 per cent hike in March 2023 because of the flow on effect it would have on the local economy in the district.

Another former mayor, Kevin Bailey, said one of the reasons given to hike rates was to discourage land banking and encourage landowners to develop.

“But council has taken the strange approach of saying develop or we’ll rate you off your land,” he said.

“This is at a time when there’s a shortage of labour and construction materials, causing major cost blow outs for building projects.”

There are more than 4000 vacant residential properties in the City of Swan.

The notice of motion was presented by Cr Dave Knight who argued in the midst of a housing crisis vacant landholders need to be encouraged to develop their land and increase urban infill.

He said the motion brought the City into line with other local governments and would generate an estimated $1.5 million extra per annum.

“That money is to be spent on lining our streets with trees, which will improve property values, create better, healthier more desirable places to live, which will improve the return for the landholders when they develop their blocks of land and sell as well as expediting the goals of the City’s Urban Forest Plan,” he said.

Earlier this month the state government announced a new strategy to improve Western Australia’s woeful tree canopy cover and reduce the urban heat island effect.

This masthead first reported local governments asking for a statewide strategy in 2016, quoting a Bayswater councillor saying the WAPC was “asleep at the wheel” on this issue, and continued reporting on Perth’s poor tree canopy and the flow-on public health effects every year since.

During that time, numerous local councils have created their own urban forest strategies piecemeal.

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