On 24 September 2025, the Property Council submitted on the Regulatory Systems (Internal Affairs) Amendment Bill 2025.
Why this matters to our members
Under Part 7 of the Bill, changes are being proposed to the apportionment rules for mixed-use commercial buildings under the FENZ levy regime. Where the building is predominantly commercial focused, the entirety of the building will be charged the commercial rate levy with no residential carve-out or cap.
Our view
We opposed the changes in the amendment bill, as the proposed apportionment method is inequitable, lacks transparency, and disincentivises mixed-use commercial developments within communities.
At a high level, Property Council recommends that the Committee:
- Introduces robust accountability and transparency measures for how FENZ levies are apportioned;
- Consider shifting towards a beneficiary-pays model; and
- Failing the first two recommendations, continues with the current approach for apportioning levies for mixed-use commercial buildings.