High-Rise Residents Face 50 Percent Rate Hikes Due to Council’s ‘View Tax’
Gold Coast City Council has implemented a new rates system for residents living in skyscrapers, which has sparked controversy among opponents who view it as unfair and assuming that all residents are wealthy.
Some apartment owners on the Gold Coast are expressing concerns over significant rate hikes, up to 50 percent, following the council’s decision to calculate rates based on property value rather than land value.
These changes could lead to an additional annual charge of $676 (US$442) for some residents.
Critics of the new approach argue that many inhabitants of high-rise buildings in the area, such as the elderly or students, were caught off guard by what is being labeled as a “view tax” on apartments located on higher floors.
Under the revised rates system, residents living up to the fifth floor will not experience any increase, but those residing on higher levels will face incremental rate hikes, reaching up to 40 or 50 percent for the top floors.
Opponents believe this method is unjust because not every high-rise apartment offers a pleasant view, yet all residents on the same level are required to pay the same rate increase.
Speaking on ABC Radio Brisbane, Laura Boss, the general manager of the Strata Community Association of Queensland, stated that residents were not consulted about the change and were not given an opportunity to plan accordingly.
Boss referred to the new rates system as a “two-speed rating system” that residents only discovered upon receiving their rate notices.
She also criticized the fact that standard homeowners are still being billed based on land values rather than views, contradicting the council’s stance that the change aimed for equity and fairness.
Boss emphasized the need for consultation with affected individuals and gradual changes to help residents adapt financially to the new system.
Adjustment Ensures Fairness, Says Council
A spokesperson for the Gold Coast City Council defended the decision, stating that the updated rates system aims to create a more equitable system for apartment residents.
“The city has adjusted its method for calculating general rates for high-rise units that serve as primary residences to ensure fairness and equity across all ratepayer categories,” the spokesperson explained on behalf of Mayor Tom Tate.
The spokesperson highlighted that the change accounts for unit size and floor level to ensure residents are charged fairly based on their property’s value.
They also mentioned that the previous method failed to consider these factors, leading to discrepancies in rates based on unit location and size.
The spokesperson concluded that the new system aligns rates with those for other permanent or short-term rental units in the area.
