Struggling local councils are set to overhaul the way they levy rates on retirement villages, leading to potential increases of up to 800 per cent for certain communities. The Cairns Regional Council is the first to introduce such a proposal, raising concerns that other councils may adopt similar measures.
Daniel Gannon, Executive Director of the Retirement Living Council, has condemned the proposed hikes as “nothing more than a cruel cash grab.” He highlighted the difficult financial circumstances many Australians are currently navigating, describing the legislative proposal as lacking empathy. Residents of affected retirement villages have voiced concerns about being forced to make dire choices, such as selling their vehicles or cancelling vital health appointments, to manage the increased financial burden. Gannon expressed dismay, stating, “This is truly awful, where people are put in a situation where they have to choose between cancer treatment and council rates.”
In response to the backlash, Cairns Regional Council clarified that while the increased rates would be directed at property owners, it would ultimately be their decision whether to pass these costs on to residents. A council spokesperson noted that some owners have indicated they will add the increased rates as an extra financial charge for tenants. The council believes that it is critical for all property owners to contribute fairly towards the maintenance of local services, such as roads, parks, and libraries.
The Cairns Regional Council further elaborated on their proposed changes, which affect around ten relocatable home parks and over-50s lifestyle resorts. The council aims to adjust the rate structure to ensure that charges are more in line with those applied to similar multi-dwelling complexes, which typically face a minimum charge of $1,072 annually, compared to as little as $58 that some retirement villages currently pay.
The proposal has sparked considerable discontent among residents and advocacy groups, as it threatens to disproportionately impact those already experiencing financial hardship. Gannon has urged the council to reconsider its approach, stating, “This council needs to put up its hand, admit it’s got this wrong and walk away from this cruel cash grab.”
As councils across Australia grapple with budgetary pressures, many are keeping a close eye on the developments in Cairns, with fears that similar policies may roll out in other regions soon. The situation underscores the delicate balance councils must strike between fiscal responsibility and the welfare of their communities.