The Gold Coast's controversial 'view tax' continues to stir outrage among apartment residents, igniting fierce debate as the local council considers potential policy changes. The view tax, which was introduced last July, imposes increased rates on owners of units positioned on the fifth floor or higher of apartment buildings along the renowned glitter strip. This tax has caused turmoil, with some residents reporting their fees ballooning by as much as 50%.
Chris Griffith, residing on the 28th floor of his Gold Coast apartment, articulated his concerns on national television, arguing the tax sets a potentially dangerous precedent. "I think everyone across the country would be concerned about whether apartment rates are going to rise eventually across the country if this precedent gets through," he asserted during his appearance on Sunrise.
The Gold Coast City Council has justified the view tax as necessary to uphold "fairness and equity for all ratepayers". According to a recent council report, the implementation of this tax could benefit 96% of ratepayers by redirecting funds. The report pointed out disparities between the rates paid by Gold Coast homeowners compared to penthouse owners boasting scenic views. It noted, for example, suburban homeowners were shelling out about $400 more each year compared to penthouse owners living at the apex of apartment towers, some having to pay just $1,223 versus $1,848 for similarly priced homes.
Under the view tax regime, those occupying units on the 40th floor could see their rates shoot up by 40 to 50 percent, with units located between the 11th and 20th floors facing increases between 20 and 30 percent. These substantial hikes have left many apartment owners feeling unjustly targeted.
Despite the council's rationale for the upsurge, many residents, including Griffith, believe the council's argument lacks merit. Griffith contended, "The council talks about equity between homes and apartments, but it's much cheaper for councils to service apartments... It seems a bit unfair to go this direction." He highlighted the lower infrastructure costs associated with maintaining high-rise buildings compared to spread-out suburban housing.
Gold Coast City Mayor Tom Tate acknowledged the discrepancies between rates but maintained the need for reform. “They should be paying the same council rates. Council will vote on [the tax adjustment],” he noted, emphasizing the council's commitment to re-evaluing the tax.
With at least nine body corporates of super towers located across Surfers Paradise, Broadbeach, and Southport voicing grievances through petitions, there's mounting pressure for change. Griffith expressed skepticism about the outcome of the city council's impending vote, predicting they would uphold the existing tax structure: “I think they will verify they want to keep things the way they are. That is from reading the council report.”
The simmering dispute over the view tax has also raised questions about broader housing policies across Australia, particularly at state and federal levels. Griffith warned against creating disincentives for downsizing residents hoping to move to apartments. "We don’t want to provide a disincentive to them," he cautioned.
With public sentiment heavily leaning against the council's proposed framework for housing rates based on property views, the Gold Coast view tax controversy shows no signs of abatement as stakeholders wrestle with the concepts of fairness, equity, and the future of urban living on the Gold Coast.