Changes in residential general rates to date for houses & units

Table 2 shows the changes in residential rates by district over the first five years of tax reform.

Average general rates are $452 higher compared to what they would have increased by in the absence of tax reform. This increase has been partially offset by the abolition on insurance duty. For example, a household spending $3,000 on insurance a year will save $300 in insurance duty.

Rates increases are also offset by savings in conveyance duty – these savings far exceed the increases in rates. About 10,000 households in the ACT benefit from lower conveyance duty each year. For example, the duty on a $500,000 home is now $7,040 less than before tax reform began.

It is important to note that from 2016-17, increases in general rates will moderate because there is no need to fund the abolition of insurance duty.

In 2016-17, general rates will increase by an average of 4.5 per cent for residential properties and by an average of 7 per cent for commercial properties.

The increase in general rates has been greater for houses than units over the first stage of tax reform because units have significantly lower average unimproved land values than houses.

Table 2 Change in average residential general rates 2011-12 to 2016-17 by district - Houses and Units

  All Houses Units
District 2011-12
($)
2016-17
($)
2011-12
($)
2016-17
($)
2011-12
($)
2016-17
($)
   without reform with reform   without reform with reform   without reform with reform
ACT 1,276 1,448 1,900 1,406 1,595 2,152 847 961 1,156
Belconnen 1,169 1,326 1,714 1,257 1,426 1,883 815 925 1,098
Gungahlin 1,067 1,211 1,534 1,119 1,270 1,641 833 945 1,076
North Canberra 1,346 1,527 2,124 1,783 2,023 3,025 801 909 1,100
South Canberra 1,787 2,028 2,807 2,492 2,827 4,333 997 1,131 1,335
Tuggeranong 1,158 1,314 1,685 1,225 1,390 1,787 803 911 1,132
Weston Creek 1,319 1,497 2,034 1,377 1,562 2,129 827 938 1,187
Woden Valley 1,452 1,647 2,247 1,710 1,940 2,721 861 977 1,232

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