Greens propose new tax on commercial property owners to revive empty Melbourne shopping strips   


January 25 2025
ABC News

The Victorian Greens are proposing a tax on commercial landlords to breathe new life into struggling Melbourne shopping strips such as Chapel Street in Prahran. 

In short:
Victorian Greens have made a pitch to voters to breathe new life into 'dead' shopping strips ahead of next month's Prahran by-election.

Their proposal is to slap a 2 per cent commercial vacancy tax on property owners who have kept their premises empty for more than six months, incentivising landlords to keep shops tenanted.

What's next?
A by-election will be held in the state seat of Prahran on February 8.


The Victorian Greens are proposing a new tax on owners of vacant shops with the goal of revitalising empty shopping strips.

The party's announcement on Saturday comes ahead of a by-election in the seat of Prahran in Melbourne's inner-south where the once bustling Chapel Street is struggling.

The plan is to introduce a 2 per cent commercial vacancy tax on owners of properties that have been empty for more than six consecutive months of the year.

The Greens say this would push landlords who have kept their stores empty instead of lowering rent, to get tenants.

Vacant shops in Chapel Street
The Greens candidate for Prahran says many people in the area are sad so many local shops have closed.

The party says independent costing conducted by the Parliamentary Budget Office forecasts the policy would raise around $258 million in state revenue over four years.

Greens candidate for Prahran, Angelica Di Camillo, said the money could be used to provide direct support for traders, artists and pop-ups in vacant premises.

Young woman and middle aged man pictured side by side on Chapel Street
Prahran by-election candidate for the Victorian Greens, Angelica Di Camillo, announced the party's new tax proposal alongside the party's national leader Adam Bandt.

"You only have to walk down Chapel Street to see how dead a lot of the shops are, how empty they are," Ms Di Camillo told reporters on Saturday.

"People are really frustrated about it and it's coming up a lot that people want to see something done about this."

She said the Greens would seek the state government's support for the new tax.

"We've been working to push this and having discussions around it (with the government)," she said.

Ms Di Camillo said in recent conversations with voters about next month's by-election many people had raised the issue with her.

"Going down further towards Carlisle Street, for example, in Balaclava, you see a significant amount of empty shops," she said.

"A lot of the time, landlords are putting up the rent and if they don't get that rent, they're happy to leave it empty and it's really impacting our neighbourhoods here.   

Shop with a 'for sale' sign in Chapel Street
There are numerous vacant shops in Chapel Street, which the Greens say is a concern for the local economy.

"Empty shops means less local jobs, it hurts the local economy and our vibrant neighbourhood."

The Prahran by-election, prompted by the departure of Greens MP Sam Hibbins, will be held on February 8.

There's also a by-election in former Labor government treasurer Tim Pallas's seat of Werribee on the same day.

How do the idiotic Greens intend to force occupancy of vacant shops?

freediver wrote on Jan 28^th, 2025 at 9:25am:


So the premise of this scheme is to make the cost of a commercial building more expensive in an effort to lower rents.

Good work Greens.

freediver wrote on Jan 28^th, 2025 at 9:25am:



I know Chapel street -
you'd have to be a sucker to buy anything there -
even T shirts cost $100 each.

The rents and rates are super high.
That's why it's all closing down.

Quote:




The Greens mentality. Rich people with their cunning plans get "tax perks" from losing money on their investment.

John Smith wrote on Jan 28^th, 2025 at 4:54pm:


you say you own a business but you seem to lack business sense. If they do manage to put a tax on vacant properties the cost of renting will be impacted. Investments are tuned to make a % of profit, increase the insurance up goes the rent, increase the cost of services, up goes the rent, increase the taxes, up goes the rent. Investors total all the costs before factoring in the return %. A vacant tax will simply become another cost to be passed onto the renter.

Leroy wrote on Jan 28^th, 2025 at 5:13pm:


If the shop is vacant there is no renter to pass the tax onto you dumbarse

John Smith wrote on Jan 28^th, 2025 at 5:16pm:


I take it you watch that 70's show.

Like I said you need a business mind to when dealing with property.

If the property is vacant for tax purposes then it would be to reduce tax from other leased property. If its your only property then there is no tax advantage. It will raise rents across the board to cover the increased costs. But don't take my word for it ask anyone over 17.