The ACT Government is continuing to support the community as society and the economy cautiously re-open.
18 June 2020
The government will significantly reduce the amount of revenue it will receive from residential and commercial general rates in 2020-21.
This will provide relief to households and businesses as they get back on their feet after the financial pressures faced during COVID-19.
The usual annual increases to average rates will not be applied to 2020-21 bills to reduce the cost of living and inject more cash into the economy.
When combined with the $150 fixed charge rebate previously announced as part of the ACT Government’s Economic Survival Package, this means that average residential general rates will not increase.
As a result, more than 110,000 households (around two-thirds) will notice a reduction to their 2020-21 rates bills while the remaining property owners may notice an increase due to their land value going up.
Average commercial general rates for commercial properties with an Average Unimproved Value (AUV) of $2 million or less (more than 90 per cent of commercial properties) will not increase. As a result, around 4,600 commercial property owners will notice a reduction in their rates bills.
Average general rates for commercial properties with an AUV of above $2 million will increase as scheduled. The average general rates increase for these properties will be 5.8 per cent. Where property owners or their tenants have experienced a significant reduction in business income due to COVID-19, they can apply for rates relief as part of the ACT Government’s Economic Survival Package.
More economic support for Canberrans
The rates relief is combined with the support already provided to property owners through the Economic Survival Package including:
- Rebates to property owners supporting their tenants through providing rent relief
- Stamp duty concessions for more home buyers
- Delaying 2019-20 quarter four rates notices by four weeks to allow more time for payment
- No interest on deferred rates for property owners significantly affected by COVID-19
- A $2,622 credit on the fixed charge on commercial rates (properties with AUV of $2 million or less) in the 2019-20 quarter four notices
- The 2020-21 fire and emergency services levy will be charged at the 2019-20 amount
- The City Centre Marketing and Improvement levy will be reduced by 50 percent in 2020-21 with the remaining 50 percent deferred by six months.
Residential and commercial landlords are also encouraged to help businesses and families by passing these savings on, where they can, to their tenants if they are struggling to pay rent because of COVID-19.
Commercial property owners wanting to provide rent relief to their tenants can visit: covid19.act.gov.au/business-hub/commercial-tenancies
Residential landlords wanting to provide rent relief to their tenants can visit: covid19.act.gov.au/help-and-advice/residential-tenancies