Greens’ Proposed Commercial Vacancy Tax Sparks Outcry Among Prahran Small Businesses

The Greens, with Prahran candidate Angelica Di Camillo, have proposed a 2% commercial vacancy tax to address empty retail spaces. Critics argue it will hurt small businesses, especially in Chapel Street, which is still recovering from pandemic lockdowns. Opposition leaders condemn the tax, calling it a burden on traders and a deterrent to investment.

Melbourne, 29 January 2025 – The Greens and their candidate for Prahran, Angelica Di Camillo, have unveiled a controversial proposal for a 2% commercial vacancy tax, drawing sharp criticism from small business owners, traders, and the Liberal opposition. The tax, aimed at vacant commercial properties, has been labelled as misguided and harmful to small businesses already grappling with rising costs and the burden of 56 new or increased taxes introduced under the Labor government.

The announcement has sparked fears among traders in iconic retail precincts like Chapel Street, many of whom are still recovering from the economic fallout of Labor’s prolonged lockdowns. During the pandemic, vacancy rates on Chapel Street soared to nearly 20%, and local businesses say they cannot afford another tax that threatens their recovery.

Brad Battin MP, Leader of the Opposition, slammed the proposal, stating, “Labor and the Greens have made Victoria the highest taxed state in the country. It shouldn’t be this hard to run a small business. The Liberals and Nationals are committed to giving Victorians a fair go, rewarding effort, and letting people keep more of what they earn.”

The proposed tax has also been criticised for its potential to deter investment in Melbourne’s CBD and hinder efforts to revitalise key retail areas. Critics argue that the tax unfairly targets small business owners and investors, who are already struggling with rising operational costs and economic uncertainty.

Rachel Westaway, Liberal Candidate for Prahran, echoed these concerns, saying, “Prahran residents want Chapel Street to return to being an iconic, vibrant, safe, and successful shopping street. Angelica Di Camillo and the Greens do not care about small businesses. This misguided tax will only hurt our wonderful Chapel Street traders.”

Westaway, a local businesswoman with firsthand experience of the challenges faced by small businesses, emphasised the need for policies that support, rather than punish, local traders. “I understand the pressures our local traders face,” she said. “This Saturday, 8 February, is your opportunity to vote for the change that Prahran needs.”

The Greens’ proposal has reignited debates about the economic policies needed to support small businesses and revitalise Melbourne’s CBD. While the Greens argue that the tax will address property vacancies and encourage investment, opponents say it will have the opposite effect, stifling economic growth and job creation at a time when businesses need support the most.

As the election approaches, the commercial vacancy tax has become a key issue in Prahran, with voters weighing the Greens’ vision against the Liberal Party’s promise of lower taxes and greater support for small businesses.

For now, Chapel Street traders and small business owners across Prahran are left wondering whether their voices will be heard—or if they will be forced to bear the brunt of yet another tax.