Rate freeze rate capping needed

Rate freeze, rate capping neededA rates freeze for property owners’ means more money in the pockets of homeowners and businesses located in central and north Adelaide, and has sparked calls for rate capping.Adelaide City Council announced the rate freeze will be part of its upcoming budget. The Property Council has applauded the decision, which executive director South Australia Daniel Gannon says “comes at a time when property-based taxes are hurting business owners and residents”.The Property Council has also called on the South Australian Government to consider the introduction of rate capping, a move already adopted by councils in New South Wales.Forty-two per cent of South Australia’s taxation revenue comes from the property sector. According to Gannon, inconsistencies and inequities in the way councils structure their rates adds an additional burden.The Property Council’s recent tax reform submission has encouraged the Weatherill Government to consider following Victoria’s lead by undertaking a review of asset management, maintenance and organisational sustainability of smaller councils. “South Australia needs to critically examine the role of local taxation through the lens of efficacy, consistency and driving economic development,” Gannon says.