Rates cap to fend off value hike

THE Hobart City Council has endorsed its budget for the 2022-23 financial year, capping its rate rise to minimise the potential of bill shock as annual assessed values for residential properties skyrocket.

Hobart rates will increase by an average of 2.81 per cent, which includes an average 2.27 per cent increase in residential rates and an additional 0.54 per cent increase to account for the state government’s new fire service levy and waste levy.

Alderman Peter Sexton said many in the community needed assurance an assessed annual value (AAV) increase did not mean their rates would skyrocket.

“Three neighbours of mine have had their AAV go up from $1.2m to $3.2m,” Mr Sexton said.

A council officer said the increase for residential properties was 46 per cent on last year.

“The city for the first time has introduce a managed rating strategy to mitigate the impacts of revaluation,” the officer said.

She said rates caps had been introduced to ensure property owners would only pay a small increase upon last year’s figure. “The rates caps mean that no residential property will experience a rate increase for the council controlled components of the rates of more than 2.6 per cent,’’ the officer said.

“For commercial that percentage is 1.6 per cent. That’s before the state government landfill and fire levies we have to collect.”

It was clarified the rate increase would be based on what was paid last year.

“If they were paying $10,000 last year or $5000, they’ll only be paying a maximum of 2.6 per cent more this year,” Mr Sexton said.

Alderman Jeff Briscoe said some Tasmanians might still struggle with stagnant wages and increased inflation.

There have been doubts about whether the city’s $72m capital works programs, which include spending $10.1m on roads renewal, $6.1m on a new warm-water pool at the Doone Kennedy Hobart Aquatic Centre, can be delivered.

“I really wish our staff very well to try get that done especially with the market at the moment, we can’t get builders, we can’t get tradies,” Alderman Marti Zucco said.