Property Council ACT & Capital Region Executive Director Ashlee Berry told a post-Budget business event today in Canberra that the Budget had ambitious targets for land release and infrastructure - but also left some bitter pills for businesses and homeowners.
"This is a Budget that sets big and welcome targets for land release and housing - but higher commercial rates risk making it harder to deliver them," Ms Berry said.
"While the headline increase in rates looks modest, the removal of differential rates will see many smaller commercial property owners and tenants hit with higher bills. These aren't big players - they're local businesses already under pressure," she said.
Ms Berry said bracket creep in the commercial rates system was driving up costs for all properties, with no clear plan for reform.
"It's hard to see a strategy here - rather, a revenue lever that's being pulled harder each year," Ms Berry said.
"There's been no adjustment to the rate brackets, leading to bracket creep that delivers windfall revenue to the Territory at the direct expense of local landowners and tenants. It's not sustainable.
"We're calling on the ACT Government to initiate a full review of commercial rates. Without this, we risk driving investment over the border and losing the very businesses that bring jobs and vibrancy to our town centres."
Ms Berry said the continued layering of levies on commercial property risked undermining the Territory's investment appeal and broader competitiveness - with impacts reaching far beyond the sector itself.
"The property sector is one of Canberra's biggest community backers - supporting everything from local sports clubs and charities to major cultural events. If we rate the sector out of business, we don't just lose jobs and investment - we lose a major force for good in our community.
"We want the ACT Government to recognise that you can't keep taxing a sector you rely on to deliver housing, support jobs, and build strong communities," she said.
