By Campbell Spence

Owners of vacant shops, derelict buildings and vacant land in Port Phillip could be hit with a rate rise of 300 to 400 per cent in a proposal by Council in a bid to revitalise our high streets which have seen numerous business closures.  

The council proposes to introduce the higher rates in the 2024-25 Budget in an attempt to push landlords to lease their disused properties.

Most residents would agree that Council must do more to revitalise our once vibrant and iconic high streets, but others are questioning the merit of introducing punitive and higher differential rates for vacant and derelict buildings and land.

Council Watch president Dean Hurlston said the City of Port Phillip was taking an “anti-business” approach to the problem of vacant properties and shops.

“It’s using a blunt instrument, designed to penalise those already struggling with high costs of goods and high wages growth,” Hurlston said. “The council should be ashamed of itself for threatening small business owners.”

The Council clearly recognises there is a significant issue “to address neglected land use that results in negative impacts to the municipality due to being under-utilised, causing safety and amenity concerns, and vibrancy concerns”.

One resident asked, “how does tripling rates on top of land taxes incentivise a landlord to find tenants for their vacant shops when consumer confidence and discretionary spending are low due to the weak economy?”.

Many shops are vacant in Bay Street, Port Melbourne and Acland Street, St Kilda had a vacancy rate of 27.5 per cent last year, according to one property consultancy – worse than Bridge Road in Richmond with 22.2 per cent.

Councillors will vote in June on the proposal to raise rates for derelict land and vacant retail spaces if unoccupied for more than two years to 400 per cent higher than residential rates and raise rates for vacant land by 300 per cent. Approximately 80 properties in Port Phillip are derelict or are vacant shops.

The proposal does not increase the Council’s overall rates revenues collected, but the owners of vacant and derelict land will have to contribute more rates compared to a property that is occupied.

Image of vacant shops on Fitzroy Street, St Kilda

Image of derelict former Poison nightclub in Fitzroy Street