Brisbane asset owners face higher taxes
New analysis of the Property Council’s annual Benchmarks survey has demonstrated that Brisbane office and retail asset owners are facing significantly higher statutory charges than their counterparts in Sydney or Melbourne.
With Brisbane City Council raising rates even higher this year, the Property Council is warning that this will only serve to make the city an even less competitive destination for investment.
In assessing the Premium and Grade A Office Building responses within the East Coast CBDs, it is clear that the owners of office buildings in the Brisbane CBD face higher local government rates and land tax per square metre than Sydney or Melbourne.
The results for retail centres within these capital city centres are even more unfavourable for Brisbane.
On a square metre basis, shopping centre assets in the Brisbane city centre are charged more in local government rates and land tax than equivalent centres in Sydney and Melbourne combined. 
Overall, on a square metre basis, statutory charges account for approximately 38% of the average operating costs of owning an office building in Brisbane, and 47% of owning a shopping centre. These figures are from 2015 and do not reflect recent increases in rates and valuations.
The Property Council is using this new analysis to complement its advocacy efforts to reform Queensland’s differential and minimum rates system and develop a fairer land tax regime.
Significant increases in CBD valuations this year have led to corresponding increases in statutory charges. The Property Council is working with members and the Government to develop an appropriate policy response that would ensure valuations for commercial buildings are fair, consistent and do not reflect changes in value for other nearby property types.
The Benchmarks survey, used to provide owners and managers with a reliable tool for evaluating the performance of their assets and preparing operating budgets, is available for purchase at a national or state-based level.