Double rates bid for Hobart

OVERSEAS property owners could be slugged double their normal rates if their Hobart residential properties remain vacant for six months under a new proposal to solve the housing crisis.

Hobart City Council alderman Marti Zucco will put a motion to council to implement a double rates penalty for foreign owners of residential properties that remain vacant for six months.

Ald Zucco is also calling on the State Government to consider a vacant land tax similar to the Victorian government model.

As of January 1, a vacant residential land tax applies to homes in inner and middle Melbourne that were vacant for more than six months in the preceding calendar year.

The Victorian government introduced the tax to help address the lack of housing supply in the state.

Ald Zucco believes that a vacant residential land rates hike and state tax could be used as a multi-pronged approach to help alleviate rental issues in Hobart.

“It is detrimental to the city to have vacant residential accommodation within the city in particular when there is a shortage of rental accom- modation,” he said.

“I am of the view that the Hobart City Council must be proactive and send a message to property owners who purchase property and leave them vacant when the city is in the need for rental accommodation.

“A special rate or tax for the under-utilisation of vacant properties may be one way of seeing these properties becoming available on the rental market.”

Ald Zucco said local residential property owners should face a 50 per cent hike in rates if their property remained vacant for six months.

“At least local investors are participating in the local economy on a regular basis,” he said.

“Overseas investors have the luxury of investing here but not participating in the local economy.”

Housing Minister Roger Jaensch said the Government would not be introducing a vacant property tax but would honour an election commitment to introduce a tax on foreign purchases of land and residential property.

“This legislation will be introduced at the earliest opportunity with surcharges expected to take effect for property settlements from July 1, 2018.”