The Northern Territory Government has announced the introduction of a Derelict and Vacant Property Levy to encourage the revitalisation of the Darwin CBD.

The levy will come into effect from 1 July 2019, with a rate of 1 per cent to be levied on commercial buildings with street frontage that is largely vacant. A rate of 2 per cent will be levied on undeveloped land, based on the unimproved capital value.

Treasurer Nicole Manison said she hoped property owners would work with Government to improve the CBD.

“People are sick of seeing eyesores in our city – so to complement our own initiatives, a Derelict and Vacant Property Levy will be introduced to further stimulate revitalisation and activation.”

“Let me be clear, this is the one revenue measure with which we don’t want to raise a single dollar. This is about activating the CBD to drive more foot traffic through our streets and into our businesses.”

The levy applies to commercial premises only – not residential, and complements the NT Government’s plan to revitalise the CBD into a greener, cooler, more modern and attractive place to visit.

From heat mitigation, leasing arrangements, artwork or attractive landscaping, there is range of initiatives that property owners can undertake to improve their sites and the look of our CBD.

“We are unlocking the CBD’s potential as an attractive, bustling and connected capital – to drive population growth, create more jobs and make Darwin a fantastic place to live, work and visit,” said Treasurer Manison.

“From street art, boutique markets, laneway festivals and heat mitigation, the Territory Labor Government is doing everything it can to make the CBD a more inviting place for shoppers, diners and tourists.”

Earlier in 2018, the Property Council of Australia’s annual audit of office space in over 25 markets across Australia showed that Darwin has the highest vacancy rate across all capital cities.

On announcing the research, Northern Territory Executive Director of the Property Council Ruth Palmer said, “This is the third consecutive year Darwin has recorded the highest vacancy rate across all Australian office markets tracked. Not only is it once again over 20%, it is considerably higher than every other jurisdiction.

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