There may be a potential end to Canberra’s high commercial vacancy rate on the horizon, with Greens MLA Johnathan Davis calling for an investigation into a potential vacancy tax.
Mr Davis moved a motion in the ACT Legislative Assembly today, Thursday 24 March, suggesting a vacancy tax could be the solution to Canberra’s empty shopfront dilemma.
“Canberra was designed to ensure each suburb has their own shops, schools, and recreation space. However, we know of too many instances throughout our suburbs, particularly in my community of Tuggeranong, where commercial property has been left vacant,” Mr Davis said.
“My constituents in Tuggeranong have been frustrated for some time about the state of a number of local shopping centres that have remained vacant for a long time – some more than 10 years. We don’t know why property owners are able to keep those properties vacant for so long and we need to get to the bottom of it.”
Mr Davis said an inquiry would also give answers as to how many residential properties are vacant, and why.
“This work is so important while Australia grapples with a housing affordability crisis. We cannot afford to have a single home in Canberra vacant while we have so many who need a home,” he said.
“My motion calls on the ACT Legislative Assembly to investigate if a vacancy tax could incentivise commercial and residential landlords to ensure their properties meet community expectations.”
Asked to comment on Mr Davis’ motion, Canberra Business Chamber CEO, Graham Catt, said he would be interested to see the findings.
“The issue of empty commercial buildings is more than just shopfronts. It varies in different parts of the city,” Mr Catt said.
“What we need to be looking for is ways to incentivise landlords to get businesses into those vacant premises.
“A vacancy tax may work, they have them in other countries with varying success, but the inquiry will give us a better understanding of what we might need to do to incentivise landlords to make sure we don’t have vacant shops.”
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