Canberra households can expect rates to freeze or be reduced: ACT gov't

Canberra households can expect residential rates to freeze or be reduced as the ACT government attempts to stimulate the economy amid the coronavirus pandemic.

ACT Chief Minister Andrew Barr detailed the plan at his State of the Territory Business Address, organised by the Canberra Business Chamber today.

“Our task now is to increase demand in our economy and to inject more cash into the ACT economy, particularly through this calendar year 2020,” Mr Barr said.

“So that means no increases to the majority of government fees and charges and no increases in residential rates this year for the majority of households.”

Mr Barr said the state government freeze, combined with the $150 rates rebate given to 165,000 residential ratepayers, would provide a rates reduction to more than 110,000 Canberra households and 4600 commercial property owners.

Thousands more will effectively see no increase in their rates next financial year.

Mr Barr’s recent address reflects what ACT opposition leader Alistair Coe has been championing since December 2019 – a move to freeze rates or push for more reasonable increases.

Canberrans have been hit with rate increases in the past few years as the state government moves to abolish stamp duty altogether in favour of a broader property tax system. The 20-year plan has been underway since 2012.

Ahead of the state election in October, the Canberra Liberals are promising a freeze on rates for the next four years if elected.

Mr Barr’s announcement comes after it was revealed a range of ACT government fees and charges, such as land title fees and building fees, would not increase in the 2020-21 financial year in a bid to cushion the blow of the COVID-19 pandemic.

In a statement earlier this week, Mr Barr said: “Many families and businesses are experiencing financial stress due to losing their jobs and personal or business income reductions.

“We know that every little bit counts, and this is one of the many ways the government can help address the cost of doing business, and the cost of living, during this pandemic.”

In his address today, Mr Barr said Canberran households could also expect a drop in their electricity bills, a result of the city’s decision to be powered by renewable energy.

The ACT’s fiscal position will deteriorate as a result of the COVID-19 crisis, however, a temporary increase in government spending during an economic downturn was an important and powerful tool, Mr Barr said.

“Right now, economic and support and growth is the priority, not chasing budget surpluses. I will provide a detailed statement on the budget outlook for the territory in late August.”