The Western Australia Government and the Western Australian Local Government Association are at loggerheads over the levying of land rates in specific circumstances involving mining licenses.
As Government News reported more than two weeks ago, a decision handed down by the Supreme Court of Western Australia appeared to have settled a debate over whether Crown land for which a miscellaneous licence has been issued, should be considered occupied rateable land according to section 6.26(1) of the WA Local Government Act 1995.
That case involved the Shire of Mount Magnet versus Atlantic Vanadium Pty Ltd.
Now, the state government says it will legislate to amend the Act to exempt such miscellaneous licenses from attracting land rates.
It says the intent is to provide “certainty to Western Australia’s local governments and resources sector”.
According to the Government, miscellaneous licences “are typically used, alongside underlying mining or exploration tenure, to facilitate infrastructure such as roads, aerodromes, pipelines and staff accommodation needed to support mining activities”.
In a statement, the Government said that “While land held under miscellaneous licences has long been understood to not be rateable under the Local Government Act 1995, the Supreme Court of Western Australia has recently ruled local governments can levy rates on land held under these licences, potentially creating millions of dollars in additional costs for mining and exploration companies throughout regional WA”.
“As a result, the State Government will move swiftly to amend the Act by clarifying that land held under these licences is exempt from local government rates.”
Local Government and Acting Mines and Petroleum Minister, Hannah Beazley, said that “Maintaining the competitiveness of Western Australia’s world-leading mining sector is critical to the State remaining the strongest economy in the nation and the best place to get a quality job”.
“The State Government, local governments and mining companies have for decades understood that land under miscellaneous licences was not rateable.
“While no local governments are currently collecting rates on land held under a miscellaneous licence, a recent Supreme Court ruling has called this understanding into question.
“That’s why our government is moving swiftly to clarify this land is not rateable, reinforcing what governments and mining companies have long understood to be the legislation’s original intent.”
The Western Australian Local Government Association (WALGA) has a different view, claiming that the state government is “putting big mining companies ahead of local communities”.
WALGA says that under the Act, all land in Western Australia is rateable for the purpose of funding local governments, unless an exemption applies.
Those exemptions include activities related to charitable, benevolent, religious and public or civic purpose land use. A further exemption applies to small (under 10-hectare) prospecting leases and unoccupied miscellaneous licences.
WALGA President, Karen Chappel, said it was an “extraordinary step” for the state government to introduce Legislation to “undermine a Supreme Court decision,” calling it a “slap in the face” for Western Australian communities.
“It is appropriate that mining companies have rates levied just as homeowners and other businesses do to support their local communities,” said Chappell.
“Meanwhile, local governments continue to upkeep the roads, infrastructure and provide services to meet the needs of their local communities.
“Mining rates are a pre-tax business expense, as opposed to all Western Australians who pay residential rates out of their own taxable income.
“Local governments use the funds collected from rates for the betterment of the local community — big mining companies should not be exempt from this.”
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