Property Activation Levy

From 1 July 2019, the Property Activation Levy will apply to vacant land and ground floor non-residential buildings within a designated zone within the Darwin CBD. The purpose of the levy is to encourage property owners to activate their properties and revitalise the Darwin CBD. A map of the designated zone can be found in the activation and beautification information brochure.

The levy will apply annually at a rate of 2 per cent for vacant land and 1 per cent for unoccupied, non-residential, buildings based on the unimproved capital value of the property. For the purpose of the levy, a building is occupied if at least 50 per cent of the ground level area, that is suitable for exclusive possession, is occupied and being used for its intended purpose.

Property owners may reduce their liability to the levy by ensuring that their property is activated.

Initial return

By 31 July 2019, owners of all vacant land and non-residential property within the levy area are required to register through TRO's online portal, INTRA, and lodge an initial declaration providing information on the status of their property.

Instructions relating to the registration process have been sent to all relevant property owners and can be re-issued by the Territory Revenue Office on request.

Property activation

Property owners that are subject to the levy may reduce their liability by activating their property. Property activation involves taking steps to ensure that the property contributes to overall amenity of the CBD and that the property is maintained to an adequate standard.

Owners of vacant land and unoccupied buildings that are not activated on 1 July 2019, but become activated before 30 September 2019 will have their liability, up to the date of activation, reduced to nil.

Commissioners Guideline: CG:PA:001 Activation of lots has been issued to provide guidance on steps an owner can take to activate their property.

Property owners may apply for an advanced opinion on a proposal to activate to ensure they can implement activation measures with certainty. Requests for opinions on proposals to activate can be lodged via email to ntrevenue@nt.gov.au

Temporary unoccupied building – COVID-19 relief from levy

Relief from the levy is available where the ground floor of a building becomes unoccupied due to a business ceasing as a direct result of COVID-19. Property owners that would otherwise be subject to the levy from March 2020 or later should apply in writing to the Territory Revenue Office for relief from the date the business ceases to 30 June 2020.

Property owners should still lodge their annual return by 30 July 2020 and the levy may be reduced by up to four months. This relief will continue after 30 June 2020 for the next return period until the Territory Revenue Office determines relief is no longer required.

A property owner will be eligible for COVID-19 relief from the levy if it has negotiated in good faith with its tenants on rent relief, for example, rent reductions, waivers or deferrals. Negotiations should be in line with the principles in the National Cabinet Mandatory Code of Conduct for commercial tenancies. The code is available on the Prime Minister of Australia website and further information is available on the Consumer Affairs website.