While the ACT Government’s Budget stamp duty reforms are welcome, the Property Council warns that the significant increase in commercial rates will undermine confidence and cast a long shadow over Canberra’s commercial property sector.

ACT & Capital Region executive director Ashlee Berry said that while the Budget put housing at the centre, it sent a very different signal to the  commercial property sector. 

“At the same time, ongoing increases in property-related taxes and charges continue to flow  through the system, and that has real implications for investment and feasibility. 

“The average 8 per cent increase in commercial rates is almost double the rate of inflation, and it will cast a long shadow over Canberra’s commercial property market,” she said. 

“It risks undermining investment confidence at a time when we need the private sector to be  driving growth, jobs and city activation.” 

Ms Berry said commercial property played a critical role in the Territory’s economy and should not  be overlooked in Budget decisions. 

“You cannot deliver a growing, vibrant city without a strong commercial property sector.”