Retail rates ring alarm Shopping centres hit with 37pc increase
HUGE sudden increases in council rates for retail centres in the middle of a once-in-acentury virus pandemic are ringing alarm bells across Townsville.
It comes as the council has had three CEOS in the past 20 months, but Mayor Jenny Hill is sticking to her guns, saying they are simply placing shops on a level playing field after finding a previous rating system was not fair or relevant.
Sentinel property fund general manager Warren Ebert, whose Woodlands Village shopping centre is being hit with a 45 per cent annual increase — an extra $27,389 — says such a big “whack” in one hit is unreasonable.
The rise comes from a 37 per cent unit increase in council rates, combined with a land valuation hike by the state government.
“There was no consultation. We pay our way. We don’t have an issue with that. But when you get that whack, is a 37 per cent increase fair and reasonable on anything? Most would say no,” Mr Ebert said.
He said such sudden hikes, without the ability to pass them on to tenants, affected property values and loan covenants and should be phased in over three to five years.
Another shopping centre owner, Peter Tapiolas of Parkside Development, said they too had been hit with a 37 per cent unit rate increase and noted that, while other councils were providing payment deferrals, Townsville was not.
The council has consolidated 31 rating categories into 23.
Cr Hill said a review found identical businesses were paying vastly different rates.
“There was clearly an imbalance which needed to be addressed, and council acted to address that imbalance,” the mayor said.
She said 17 major grocery stores would see a 37 per cent increase in their rates, while an average 21 per cent discount would apply to some longstanding shopping centres.
A more modest 3 per cent increase applied to 16 large retailers, including homemaker centres.
While the council announced rates deferrals earlier this year, Ms Hill said their support package included the ability for businesses to seek a deferral. She encouraged ratepayers to discuss the support they could provide.
But federal MP Phillip
Thompson said he had written to the mayor several times in recent weeks, bringing cases to her attention, and had not received a response.
“I have been inundated with people upset about the increase in rates. People are hurting. Rising rates puts undue stress on people, their businesses and their families,” Mr Thompson said.