‘Tenant tax’ has people hot under the collar

THE temperature is rising and not just in terms of weather. Debate over Cairns Regional Council’s proposed new nonprincipal place of residence rating category is heating up. When council signalled its intentions in June there was barely a ripple, but a dawning realisation has hit hard in recent months.

The Cairns Post has been flooded with letters and texts about the issue and it’s been thrashed out on our Facebook page too. The arguments against it have ranged from it being a “wealth tax” to another cruel blow in the housing crisis.

So much so that investors and realtors have warned rents will go up as investors pass on the cost — something many renters cannot afford with the skyrocketing cost of living.

Not surprisingly the rate is colloquially being called a “tenant tax”.

Communication to ratepayers about council’s plan to introduce the rate — which is already something charged in many other Queensland council areas — was poorly rolled out, something Mayor Bob Manning has conceded.

The Cairns Post has asked each councillor how they would vote on the matter and reveals today their answer.

Four councillors are adamant about how they intend to vote while the others including Brett Moller and the mayor claim to be sitting on the fence despite publicly stating the benefits.

Mayor Manning and his Unity Team have won elections largely off the back of keeping rate rises low but rising costs post-pandemic are being blamed for the need to introduce the investor category.

They won’t want the majority to bear the brunt of a rates hike but investor backlash might just turn their hand.