Derelict and Vacant Property Levy

The Treasurer announced that one of her Budget Revenue measures would be the introduction of a Derelict and Vacant Property Levy that will commence from 1 July 2019.

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

A policy that simply involves taxing owners is not going to solve the problems of the CBD. Certainty, investor confidence, and improved business conditions will encourage investment, not more taxes.

Property owners doing the right thing should not be punished because a few aren’t maintaining their properties. A lot of property owners are long term Territorians, we don’t have the large multi national corporations – this is going to sting the back pocket and hurt those that have only tried to get ahead. We can’t force business to set up in the CBD when there has been no economic activity. We can’t afford to further hurt business confidence.

This levy will be very hard to measure if implemented and an appropriate Assessment Panel must be put in place to ensure it is fair and equitable.

Our City Centres Committee and Commercial Real Estate Committee are currently preparing some advice on this matter for the Minister.

We are at least glad to see that the government has chosen to wait until July 2019 to implement this tax so there is hope that common sense will prevail before then.

Despite this, we are pleased that the NT government is not introducing a land tax.