Townsville Business Leaders Express Concern Over 50% Rate Hike

In a significant move that has drawn concern from local business leaders, the Townsville City Council announced a 50% increase in minimum commercial and heavy industry rates as part of its 2025-26 budget. This decision, which follows a 42% increase in industrial land values and a 22% rise in commercial land values, has raised alarms about the city's competitiveness in attracting and retaining businesses.

The budget, delivered in June 2025, outlined that a commercial ratepayer previously charged a minimum of $1,506 will now incur charges of $2,329, while the minimum rate for heavy industry properties has jumped from $2,259 to $3,383. The council’s spokesperson clarified that these changes are based on updated valuations from the Queensland valuer-general, which determined that the total value of commercial properties in Townsville increased by 22.9% and industrial properties by 42.4% between 2022 and October 2024.

Craig Stack, a commercial property manager with over two decades of experience in Townsville, expressed deep concerns about the implications of these rate hikes. He noted that the increase comes on the heels of already rising operational costs, including those for insurance and electricity. Stack stated, "It will be troublesome; it is a cost they haven’t expected. Townsville risks losing its competitive edge to Cairns or Mackay, where the council budgets did not reflect such significant increases in commercial rates."

Similarly, Michael Kopittke, an investor and former board member of the Townsville Chamber of Commerce, remarked on the potential for landlords to pass on the increased costs to tenants, which could further impact the local economy. "I am aghast at the fact that the council would consider increasing rates to landlords by up to 15 times inflation," he said. Kopittke emphasized that such financial pressures could deter potential investors from considering opportunities in Townsville, especially in light of more favorable conditions in neighboring regions.

Despite these criticisms, the Townsville City Council maintains that their methodology for calculating rates has not changed. The council pointed out that the significant changes in rates are directly tied to the re-evaluation of property values, which was necessary to ensure fair taxation.

Acting Mayor Ann-Maree Greaney did not address the commercial rate increases during her budget speech, prompting calls for greater transparency from the council regarding how these rates were determined. Stack and Kopittke both urged the council to communicate more effectively with businesses about impending costs and the rationale behind them. The council's spokesperson acknowledged the complexity of the rate structure, given the diverse array of more than 85,000 properties categorized across 57 different classes.

The implications of these rate increases resonate beyond immediate financial burdens. Should the trend continue, Townsville may find itself at a disadvantage compared to other regional cities, hindering its ability to foster economic growth and stability. As the local economy grapples with these challenges, stakeholders from various sectors are calling for a reassessment of the council's approach to property taxation, advocating for strategies that prioritize competitiveness and sustainability in the long term.