Which Sunshine Coast property owners will be most affected by the 2024-2025 Budget?
The 2023/2024 budget was the first billion-dollar budget in the history of the Sunshine Coast.
The Transitory (short stay) Accommodation category was hit hardest by increases to the General Rate in the 2023/2024 Sunshine Coast Budget.
It is interesting to note that last year's Budget Snapshot includes no mention of the increase to Transitory Accommodation rates, even though they experienced the most notable increases.
Diving deeper, on page 9 of the 2023/24 Budget Book ex-Mayor Jamieson discusses the intention behind the massive transitory accommodation rate changes.
3. Media releases – Budget Adoption, 22 June 2023 Sunshine Coast Council 2023/24 Budget Book | Page 9.
Transitory (short stay accommodation) rate changes
Mayor Jamieson said one of the greatest challenges both the community and Council had grappled with recently was the many previous long term rental homes and units now being used for short stay accommodation.
“This has contributed to the longer-term rental shortage on the Sunshine Coast,” Mayor Jamieson said.
“And we are not the only local government facing this challenge - many long-term renters and communities across the world have felt the impacts.
To remain consistent with other south east Queensland tourism destinations, short stay accommodation properties have been reviewed and benchmarked, resulting in rate increases comparable to those of other local government organisations.
We wanted to encourage owners to leave properties in, or return them to, the long-term rental market.”
Property owners have the option to return their properties to the longer-term rental market and reduce their rates should they choose to.
Schedule of Rates (Extract) comparing 2022/23 & 2023/24
|
2022/23 |
2023/24 |
Category |
Differential General Rate 2022/23 |
Minimum Differential General Rate 2022/23 |
Differential General Rate 2023/24 |
Minimum Differential General Rate 2023/24 |
|
16 |
16 |
Residential - Not Principal Place of Residence/Multi Dwelling - $0 to $595,000 RV |
0.3826 |
$1,600 |
0.4192 |
$1,689 |
|
16RT |
16RT |
Residential - Rural Transitory Accommodation - $0 to $595,000 RV |
0.6703 |
$1,898 |
0.9384 |
$2,813 |
|
16UT |
16UT |
Residential - Urban Transitory Accommodation - $0 to $595,000 RV |
0.6908 |
$2,087 |
0.9671 |
$3,093 |
|
17 |
17 |
Residential - Not Principal Place of Residence/Multi Dwelling - $595,001 to $715,000 RV |
0.3348 |
$2,273 |
0.3665 |
$2,495 |
|
17RT |
17RT |
Residential - Rural Transitory Accommodation - $595,001 to $715,000 RV |
0.5749 |
$3,986 |
0.8049 |
$5,584 |
|
17UT |
17UT |
Residential - Urban Transitory Accommodation - $595,001 to $715,000 RV |
0.6332 |
$4,253 |
0.8865 |
$5,755 |
|
18 |
18 |
Residential - Not Principal Place of Residence/Multi Dwelling - $715,001 to $1,070,000 RV |
0.3498 |
$2,659 |
0.3664 |
$2,621 |
|
18RT |
18RT |
Residential - Rural Transitory Accommodation - $715,001 to $1,070,000 RV |
0.6109 |
$4,508 |
0.8049 |
$5,756 |
|
18UT |
18UT |
Residential - Urban Transitory Accommodation - $715,001 to $1,070,000 RV |
0.6028 |
$4,773 |
0.8439 |
$6,339 |
|
19 |
19 |
Residential - Not Principal Place of Residence/Multi Dwelling – over $1,070,000 RV |
0.3497 |
$4,077 |
0.3663 |
$3,921 |
|
19RT |
19RT |
Residential - Rural Transitory Accommodation - over $1,070,000 RV |
0.5787 |
$6,590 |
0.8102 |
$8,613 |
|
19UT |
19UT |
Residential - Urban Transitory Accommodation - over $1,070,000 RV |
0.6143 |
$7,052 |
0.8600 |
$9,030 |
|
25 |
25 |
Shopping Centres - over $10 million RV not in Category 26 |
1.6757 |
$170,825 |
1.5538 |
$93,325 |
|
|
25A |
Shopping Centres - $10,000,001 to $20 million RV |
|
|
1.8433 |
$155,381 |
|
|
25B |
Shopping Centres - $20,000,001 to $45 million RV |
|
|
1.8430 |
$368,660 |
|
26 |
26 |
Shopping Centres - Maroochydore over $45 million RV |
2.8778 |
$1,999,032 |
3.1656 |
$2,198,935 |
|
27 |
27 |
High-rise Units - Not Principal Place of Residence |
1.0407 |
$2,468 |
1.0985 |
$2,605 |
|
27RT |
|
High-rise Units - Rural Transitory Accommodation |
1.6063 |
$2,851 |
|
|
|
27UT |
|
High-rise Units - Urban Transitory Accommodation |
1.6732 |
$2,964 |
|
|
|
|
27T |
High-rise Units - Transitory Accommodation |
|
|
2.3425 |
$4,315 |
|
28 |
28 |
High-rise Units - Principal Place of Residence |
0.9718 |
$2,044 |
1.0257 |
$2,157 |
|
29 |
29 |
Low-rise Units - Not Principal Place of Residence |
0.6307 |
$1,600 |
0.6657 |
$1,689 |
|
29RT |
|
Low-rise Units - Rural Transitory Accommodation |
1.1027 |
$1,858 |
|
|
|
29UT |
|
Low-rise Units - Urban Transitory Accommodation |
1.1610 |
$1,896 |
|
|
|
|
29T |
Low-rise Units - Transitory Accommodation |
|
|
1.6254 |
$2,813 |
|
30 |
30 |
Low-rise Units - Principal Place of Residence |
0.5276 |
$1,332.50 |
0.5569 |
$1,406.50 |
*RV – Rateable Valuation *Red text indicates amended rate categories
Where two or more concurrent valuations have been issued affecting a property which consists of one block of land, and, as a result, two or more rate assessments will apply to the subject property, such assessments will be levied in such a manner that the minimum differential general rate will apply only to the combined total of the rateable valuations for the subject property.
General Rates: There are 49 General Rate categories determined for 2023/24. These categories are detailed in the 2023/24 Revenue Statement (PDF, 8.2MB). Every property in the region has been allocated one of these 49 categories. Each category has a 'cents in the dollar rate'. General Rates are calculated by multiplying the rateable value of a property by the category's 'cents in the dollar rate'. The minimum charge applies when the resulting amount is below the set minimum General Rate for the category.
Land valuations: The value of your land, along with the main or primary land use, is the basis for the calculation of the General Rate. The Department of Resources (DR) sets this rateable value.
In the Council's Ordinary Meeting held on 24 April 2024, the Financial Performance Report Item 8.2 denotes a current debt of $418 million, as at 31 March, with additional new borrowings expected for 2023/24 of $28.5 million.
It will be interesting to see how much Rates will increase in 2024/2025, and which property ownership segment will incur the biggest increases.
