Gold Coast High-Rise Apartment Owners Hit with ‘View Tax’

Key takeaways

High-rise apartment owners in the Gold Coast council area who live on the 40th floor or above face a rate increase of up to 50 per cent.

Those on floor 11 and higher have also had their rates rise in the past six months.

The council says the change will ensure "fairness and equity" but some residents say it will hurt home owners already struggling with the cost of living.

The Gold Coast Council has decided to add a new 'tax' via massive rate hikes on unit owners living on higher floors of apartment buildings.

More than 12,000 high-rise apartments have been included in the revised rate categories.

This move, labelled a "view tax" by advocacy groups, affects high-rise apartment owners residing on the 40th floor or above, with rate increases of up to 50%.

For owner-occupiers living between floors 21 and 40, rates have surged by up to 40% in the past six months.

Those on floors 11-20 have seen a 30% hike, while residents on levels 5-10 face a 10% increase.

However, there is no change for unit owners below the fifth floor.

The council defends these charges, stating they ensure "fairness and equity across all ratepayer categories" and reflect how height and unit size impact property value.

A council spokesperson explained, "This change aligns rates with methods used for other units, whether they are permanent or short-term rentals."

Council defends the reform

In an article from abc.net.au, Division 9 Councillor Glenn Tozer said that the new rates system is fairer for the city’s more than 250,000 ratepayers.

He pointed out that, until 2013, rates were based on property value, and the latest changes reintroduced a model that charges a premium for high-rise units that are more valuable.

He also  acknowledged that high-rise property owners might be frustrated but argued:

"A person living in a $2 million, $3 million, or $5 million penthouse should not pay the same rates as a ground floor unit.

People in more expensive apartments should pay a bit more, and frankly, I think it’s the right thing to do."

Several property owners aren't happy

Queensland’s Strata Community Association has condemned the "view tax" as "outrageous."

General Manager Laura Bos described the rate hike as "cruel" during a cost-of-living crisis, where many Queenslanders are already struggling.

She argued that unit sales are ultimately determined by "what a person is willing to pay," and the rate hikes could make apartment living unattractive and unaffordable, countering the idea that units could help address the housing crisis.

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.