Property tax war looms

PROPERTY owners are on a collision course with the Gunner Government over the way it will implement its vacant and derelict building levy.

Treasurer Nicole Manison announced the levy in the May Budget. It is scheduled to start on July 1 next year.

The Property Council of Australia NT division executive director Ruth Palmer blasted the government over the lack of information describing the entire thinking of the process as flawed.

“No information has been provided regarding the boundaries,” Ms Palmer said.

“No information has been provided regarding how they will collect the levy or how much it will cost the government to collect the levy.

“This policy appears to be a knee-jerk reaction based upon flawed thinking.

“The proposed levy will likely be counter productive and reduce the vibrancy and liveability of the CBD in the long-term by encouraging inappropriate uses of these vacant and derelict sites and by making the CBD a less attractive place to invest.

“It does nothing to fix the real problem, which is the poor economic conditions that are not allowing owners to invest in their properties.

“The government is complaining about too many vacant shopfronts while at the same time trying to force property owners to build more vacant shopfronts. This makes no sense.”

Under the proposed tax, a rate of 1 per cent will be levied on buildings which have a 50 per cent vacancy rate or more, and 2 per cent will be levied on undeveloped land, based on the unimproved capital value.

Vacancy will be assessed on the use of the property for the 12 months preceding the tax being assessed, with a property that is more than 50 per cent vacant for the preceding year being subject to the levy.

The revenue will be put in to the NT Government’s general funds.

Ms Manison said the government was “carefully considering a number of factors in the design of the levy.”

“This is one revenue measure where we don’t want to raise a single dollar,” she said.

“Government is carefully considering a number of factors in the design of the levy, including its boundary and administration, to strike a balance between promoting immediate and long run investment in the CBD while also being sensitive to current market conditions.”