Frankston City Council has dropped a proposed rate hike for long-term vacant shops in the city centre after most respondents opposed the plan.
Council had considered a new differential rate set at 300 per cent of the general rate for vacant commercial properties in the Frankston Metropolitan Activity Centre.
The proposal targeted properties that had not opened to the public for retail trade for at least 90 days in the previous 24 months.
Council estimated the change could have affected 96 vacant commercial properties.
Councillors voted against progressing the proposal at the 20 April council meeting after community consultation showed 59 per cent of respondents opposed it.
Business Owners Push Back
The strongest opposition came from commercial property owners and business owners.
Critics argued the rate would punish owners already trying to lease empty shops, rather than deal with the reasons businesses leave or avoid the city centre.
Council’s own consultation material listed several factors behind retail vacancies, including rising costs, online retail, reduced office demand, antisocial behaviour, land banking, small business vulnerability and parking constraints.
The proposal also raised concerns that some owners could pass extra costs on to other businesses.
Empty Shops Still A Challenge
Council put forward the rate as one way to tackle long-term vacancies and improve the look and feel of the city centre.
A May 2025 audit found 96 vacant retail properties in Frankston’s city centre, equal to a 23 per cent vacancy rate.
Supporters of the plan argued empty shops hurt the city centre and that a higher rate could push property owners to fill vacant spaces.
Council’s material said the proposed rate would not have changed residential rates.
It also said the rate could have raised about $40,000, likely leading to a small reduction for other commercial ratepayers.
What Happens Next?
Council will now leave its current Revenue and Rating Plan unchanged.
That means Frankston still faces the same central question: how does the city reduce empty shopfronts without using a rate penalty?
Council says its Economic Development team will continue working with shop owners through business grants, façade improvement grants, safety and amenity work, business concierge support, investment attraction and street activation.
The decision removes the immediate threat of a higher rate for vacant commercial property owners, but it does not remove the wider problem of empty shops in Frankston’s city centre.
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