The proposal was introduced by Whiteman Ward councillor Dave Knight at a recent council meeting, and proposed the introduction of the vacant land, residential, commercial and minimum rating categories as part of the City’s 2024-25 annual budget process.
The new rates modelling calls for the establishment of the proposed rate in the dollar for vacant land rating categories at a rate that is 30% higher than for the improved land.
Councillor Knight expects the estimated additional income of $1.5m, to be used to boost the City’s Street Tree program.
Part of the reason provided by Cr Knight was that ‘We are in a housing crisis, and we need to increase urban infill by encouraging vacant landholders to develop their land’.
The introduction of the rate rise had previously been rejected by council in March 2023, with some of the reasons citing the fact that the proposal had not been raised in the public for consideration and that it is an unwarranted imposition on owners that already pay other taxes such as Land Tax on top of their existing vacant land rates.
Furthermore, ‘it has been well documented in the media that since 2020, due to an overheated construction market in Perth, many people have experienced significant delays on their home builds. There may be complaints from ratepayers, who consider this an additional financial penalty imposed by the Council, for something out of their control.’ (8 March 2023 OCM).
The motion was voted for in favour by Crs Johnson, Howlett, Knight, Catalano, Dawn, Miles and Mayor Richardson, who used her casting vote to get the motion passed.
