Property Council seeks submissions as ACT commercial rates inquiry announced
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Dec 18, 2018
Property Council seeks submissions as ACT commercial rates inquiry announced
With commercial rates in the ACT around nine times higher than residential, the Property Council is urgently seeking data for commercial office space to provide an insight into the current effects of rate increases.
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Flickr user Tim J KeeganCanberra CBD from Mt Ainslie
The ACT Legislative Assembly has announced that the Public Accounts Committee (PAC) is conducting an inquiry into commercial rates, with submissions due by 4 February 2019. The Committee is expected to report by 4 April 2019.
Chair of the PAC, Vicki Dunne MLA said, “Commercial rates has been an issue that has caused consternation in the community for some time, so it makes sense for the PAC to look into this issue.”
“We have a tight timeframe for this inquiry so the Committee is calling for submissions by cob Monday 4 February 2019,” Mrs Dunne said. “Early submissions are encouraged.”
Alternatively, the Committee has devised a brief survey to assist people in lodging submissions, which can be found here.
With a remit covering ‘all issues relating to commercial rates in Canberra’, the Committee is expected to investigate the process for determining ratings factors; the impact of lease variations; how valuations are conducted; the amount paid by property owners; the impact on leasing costs, property values and business viability; and the effectiveness of the commercial ratings system and its impact on the businesses and the property sector in Canberra.
In a response to the announcement, the Property Council of Australia says it is actively engaged on the issue of commercial rates with the ACT Government and invites members’ input into its submission before 21 January 2019.
According to the Property Council, although the highest marginal tax rates for both commercial and residential properties have more than doubled what they were in 2012, commercial rates are now approximately nine times higher than residential rates (comparing the highest marginal tax rates of 5.1675% for commercial to 0.57% for residential).
In effect, this means owners of commercial properties above $600,000 in land value are paying the equivalent of a stamp duty-like charge every year.
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