New rating system set to hit Bunbury businesses

A new rating system will hit many Bunbury commercial property owners with rate increases of thousands of dollars.

However, residential owners and businesses in the city centre are set to have their rates cut.

Bunbury City Council has proposed to dramatically change the way it rates properties across the city and will seek public comments for three weeks.

It will introduce a single rate for all properties in Bunbury, doing away with different rates for residential areas, the central business district and other commercial properties.

This comes as Bunbury property rental values – on which rates are based – have also increased after a re-evaluation from Landgate.

Under the proposed rate plan, the council will introduce an average 6.6 per cent increase across Bunbury to raise $32.4 million in the next financial year.

The plan will mean CBD property owners will pay less rates than in previous years but industrial and other commercial property owners will pay more.

Council modelling shows 600 property owners will be hit with a rate increase of more than 20 per cent – some as high as 50 per cent.

Bunbury Chamber of Commerce and Industries chief executive officer Ray Philp said the council should look to introduce concessions to soften the blow.

Commercial Realty principal Mike Jenkins was surprised the council would introduce the rate increase without concessions.

“I was surprised the council did not ease it over a couple of budget years instead of putting it in one year, ” he said.

According to council figures, residential property owners face an average 4.3 per cent rate rise and commercial owners an average 10.7 per cent rise.

The council voted against capping the increase to 20 per cent, which would have lost $500,000.

Some councillors, including Deputy Mayor Brendan Kelly, argued some businesses would have to “lose some skin” to create a fairer rate system.

Others were concerned that a significant increase could threaten some businesses.

Mayor Gary Brennan said it was important all residents looked at the proposal because it was a “significant” change.

“That is a significant shift because what it will mean, if that is council’s decision at the budget meeting, is city centre ratepayers will be paying less and business ratepayers in other parts of the city will be paying more than they have in the past, ” he said.

Mr Brennan strongly encouraged feedback on the proposal.