Sam Carlini, 24, and his mum Kelly Marshall bought a Mr Fluffy block in Curtin hoping to build a family home Mr Carlini could one day raise his kids in.
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But with construction expected to kick off in weeks, they were shocked to find their rates bill will be more than $111 a week, compared to an estimated $60 for neighbouring blocks.
A recent ACT Revenue Office assessment increased the unimproved land value of their block by 50 per cent.
Government officials told Mr Carlini and Ms Marshall this reflected the price they paid for the land in one of the mass Fluffy auctions in March, $855,000.
However Ms Marshall said it was unfair to base the unimproved land value of the block on a price she believes was heavily inflated by the frenzy of the Mr Fluffy auctions.
She has lodged an objection to the assessment, a process she was told will take six months.
Three other Mr Fluffy block buyers have also lodged objections to their rates, an ACT government spokeswoman said.
Ms Marshall said the average land rates increase of 7 per cent for Curtin handed down in the June budget should apply to all residential blocks, including Mr Fluffy remediated blocks.
"It is unreasonable for the ACT Revenue Office to consider the sale price of Mr Fluffy remediated blocks in the redetermination of average unimproved values," she said.
"The asbestos remediation project is unprecedented and caused an unrealistic inflation in the sale price of vacant blocks in established residential suburbs as buyers scrambled for this one-off opportunity."
Mr Carlini said it was particularly unfair, as the cost of building on the remediated Fluffy blocks was already higher.
Builders will have to install piers to support their new house because of the uncompacted fill in the footprint of the old house. If the piers are not installed, the house is likely to shift.
"We have a fairly tight budget as it is, we're someone on a pension, and someone who works in hospitality trying to afford a house," Mr Carlini said.
"I still think buying Fluffy blocks are a good option for people but they need to be wary about the cost and the government needs to be upfront about these things. If we'd have known, we would have put it into our budget.
"It's not that more a week but it's more about the reasoning than the fact it's been done."
However the government spokeswoman said rates for existing Fluffy blocks were calculated the same as any other residential parcel of land in the ACT and the blocks were sold at market price just like any other.
