Gold Coast apartment owners face unexpected ‘view tax’ in council rates shake-up

The Real Estate Institute of Queensland (REIQ) has criticized a new rating system implemented by Gold Coast City Council that will result in higher rates for apartments on higher floors.

REIQ CEO Antonia Mercorella expressed surprise and disappointment at the council’s decision to introduce changes to rating categories for over 12,200 high-rise units without prior consultation or phased implementation.

“Colloquially known as a ‘view tax’ but certainly not common place in Queensland, this is an arbitrary way of raising rates masked as creating greater equity,” Mercorella said.

The new system, which assigns higher rates to apartments on higher floors, has been introduced without warning to property owners.

Mercorella highlighted concerns about the impact on housing affordability, stating, “People are choosing apartment living over freestanding houses largely due to greater affordability and access to shared facilities.”

She added, “They would never have guessed that buying on the 21st floor as opposed to the 20th floor, for example, would come with ongoing penalties.”

The REIQ questions the council’s authority to assign value to views, arguing that views are part of the natural environment and not public infrastructure provided by local government.

Mercorella also pointed out that apartments often place less strain on council services due to shared facilities, making the additional charges seem unjustified.

While acknowledging that elevation can affect property values, particularly for penthouses, Mercorella emphasized that market forces should determine property values rather than arbitrary council formulas.

The REIQ has called for transparency regarding how the new floor tiers and rates categories were calculated, questioning whether the research justifies the perceived value tiers.

Mercorella cautioned that such unexpected and potentially unfair rate hikes could erode trust and confidence among property buyers and owners, stating, “Property owners are not a bottomless money pit.”

The introduction of this ‘view tax’ raises questions about fairness in local government taxation and its potential impact on the property market in the Gold Coast area.