The new president of the ACT Property Council has called for greater transparency in the setting of commercial rates, saying the uncertainty is hampering businesses ability to make decisions about their future.
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Village Building Group chief executive Travis Doherty has singled out commercial rates as the "most pressing issue" facing the property sector as he starts his two-year term at the helm of the lobby group.
Mr Doherty said rates were causing "real concern" for property owners, referencing a recent case in which a widowed retiree had broken down in front of a Property Council member as she described how her retirement funds had been slashed by a ballooning commercial rates bill.
He said the Property Council agreed with premise of the ACT government tax reforms, but believed there was a "better way to do it".
"What our members are telling us is the process for determining rates is not transparent enough and the ability to have them back-dated is causing real concern and anxiety, as is the sheer increase [in rates bills]," Mr Doherty said.
"We think there can be more transparency in determining unimproved values ... perhaps an independent body to assess rates increase, or look at capping them."
Mr Doherty's call echoes statements from the Real Estate Institute of the ACT's Guy Randall, who this told month the ACT assembly's commercial rates inquiry that the territory needed an independent body to set rates.
"Nobody in the industry is unwilling to pay their fair share of taxes and charges," Mr Doherty said.
"But it's when your ability to predict and model that, and factor it in to your upfront investment decisions, [is impaired] that's when it becomes enormously challenging. We hear our members saying that they are walking away, or letting opportunities go, because there is too much uncertainty. That is happening right now."
Speaking with The Canberra Times on Tuesday afternoon, Chief Minister Andrew Barr said the government was providing more clarity on future commercial rate rises than it had before the start of its tax reform program.
But Mr Barr said the length of parliamentary terms meant it was difficult to make projections beyond five years.
Mr Barr again defended his government's policy, which focuses on phasing out some taxes in favour of higher land taxation.
"I understand that no one likes tax, but I don't have many options to raise revenue," he said.
"The alternative is that we have to spend less on health, education, transport, and community services because the reality is that we have such a narrow revenue base here in the ACT."
ACT Property Council executive director Adina Cirson was scheduled to appear before the assembly's rates inquiry on Wednesday, coinciding with the unveiling of Mr Doherty as the lobby group's new president.
He succeeds George Katheklakis, who filled the president's position for four years.
"Travis brings not only his experience of leading Village Building Company, but 25 years’ experience in executive leadership positions across a range of industries including property development and construction, financial services, manufacturing and professional services," Ms Cirson said.
Lendlease senior development manager Arabella Rohde and Amalgamated Property Group's Phil O'Brien were also elected vice presidents at a Property Council meeting earlier this week.
In addition to the commercial rate debate, Ms Cirson said the Property Council would this year focus on calls for the creation of a long-term infrastructure plan for the Canberra region.
The group also wanted to work with the National Capital Authority as it finalises new planning rules for Northbourne Avenue and Federal Highway as part of the City and Gateway framework, she said.
