Port Stephens residents facing large rate rises are questioning why land lease residents can avoid paying rates at all.
Port Stephens has seen many over 55s communities spring up in recent years, including land lease developments such as Sunrise, Latitude One, and Palm Lake Resort.
Kate Washington MP, the Member for Port Stephens (pictured), told News of the Area that the NSW Government has ignored the “explosion” of land lease communities in the region over the last 12 years.
“They’ve allowed outdated planning laws to remain the same, meaning de facto subdivisions could be developed without residents paying rates.
“The government has failed to keep its laws up to pace with housing demand, leaving our Council with a significant hole in its coffers.
“NSW has a housing crisis, and more homes are needed, but we must ensure development is appropriate and that there’s adequate infrastructure to support them.”
Steve Peart, Group Manager Development Services at Port Stephens Council, said that councils are only allowed to calculate rates on land value and land category, and land lease communities are single land parcels owned by single business entities that pay a business rate.
“Each home site in an estate is leased by the occupant from the business entity.
“As homesites in estates have some shared services, the NSW Valuer General cannot issue a separate valuation for each home site or residence.
“As a result of this legislation, residents of over 55’s style development do not pay rates.
“It is fair to say that legislation has not kept pace with these developments, so the apparent inequities continue,” he said.
Port Stephens Council and other local governments have been lobbying the State Government to reform lifestyle village regulation.
