- National
- ACT
This was published 8 years ago
Canberra business owners struggle as commercial property rates rise
By Megan Gorrey
Canberra's retail hubs are under pressure as business owners are slugged with skyrocketing rates bills for commercial properties.
Manuka Newsagency owner John Nobbs was staggered when his latest rates notice showed the value of his prominent Franklin Street property jumped more than $1 million in the past year.
"We'll just have to pull our belts in." Manuka Newsagency owner John Nobbs fears climbing rates for commercial property owners could see more businesses close as consumers flock to hotspots like Kingston Foreshore and Braddon.Credit: Jamila Toderas
Mr Nobbs has traded from the building for 30 years and believed there hadn't been any recent sales to inform the rise from $1.56 million to $2.65 million, particularly given rents in the area had dropped.
The fresh valuation contributed to a steep $6000 increase in his quarterly rates for the building to $24,500 a quarter.
"I just can't understand where they're coming from to increase the rates that much," he said.
"Fair enough if it was in line with CPI at two per cent, but this is just ludicrous."
Mr Nobbs bought the building five years ago and had already dropped rent by more than $1000 per month for two restaurants which operated from the site.
Manuka Business Association president Mary-Jane Liddicoat said the revised property value and the rates hike was a "double slug" for the business owner.
She said any rate increase forced property owners to push up rents and business owners couldn't be expected to absorb the extra costs.
"It's extremely tough and I'm not sure the government really gets what it takes to run a small business in Canberra."
Chief Minister Andrew Barr said Mr Nobbs' building was one of three blocks in the main street area that had been regraded after the ACT Valuation Office found they had been valued well below the price of surrounding commercial properties.
The revised figures reflected comparable sales in the area to allow for a more even distribution of values across Manuka's commercial properties, he said.
Opposition treasurer Brendan Smyth said he had been contacted by other Manuka business owners whose rates had gone up "extraordinary amounts".
"I am aware of at least one business who has taken the government to court and others are considering their options," he said.
"Furthermore, I speak to businesses right across Canberra who tell me their rates are sharply increasing."
Mr Smyth said iconic Canberra precincts like Manuka would be at risk if rates continued to climb and businesses found it more difficult to trade.
Property Council ACT executive director Catherine Carter said the strain wasn't limited to Manuka and bolstered rates, forecast in this year's budget, caused pain in the hip pockets of business and property owners across the territory.
She urged the government to review the marked increase on commercial property rates.
"The rates have gone up on all commercial properties so it's been felt quite acutely in Civic and some of the major group centres like Manuka," she said.
"Concerns like those are really being expressed by many, many business owners."