A decision handed down last week by the Supreme Court of Western Australia, appears 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.
The case involved the Shire of Mount Magnet versus Atlantic Vanadium Pty Ltd.
Atlantic Vanadium had obtained a number of ‘miscellaneous licenses’ in Western Australia for use as part of its Windimurra Vanadium project. Together, the licenses cover 5,633.39 hectares, 4,237.59 of which are within the Shire (with the remainder being within the adjoining Shire of Sandstone).
The mining company contended that its use of the land made it exempt from having to pay rates.
The Local Government Act 1995 says that all land in the state is rateable for the purpose of funding local government operations, unless there is an exemption.
Exemptions often revolve around charitable, benevolent, religious and public or civic purpose land use, as well as for small prospecting leases under 10 hectares and, importantly, unoccupied miscellaneous licences.
In 2024, the State Administrative Tribunal, ruling in the matter of the Shire of Mount Magnet v Atlantic Vanadium Pty Ltd, found that local government rates may not be levied on land subject to a miscellaneous licence granted under the Mining Act 1978, regardless of the nature of the occupation of that land by the tenement holder.
Last week’s Supreme Court decision has reversed that finding in this matter, determining that Crown land, subject of a miscellaneous licence, is rateable for local governments.
Western Australian Local Government Association (WALGA) President, Karen Chappel, has welcomed the decision.
“WALGA supports this important decision, noting a miscellaneous licence is often used for the development of significant infrastructure, and because of this, Justice Solomon determined, local government involvement is critical,” she said.
“This significant infrastructure includes, roads, water infrastructure, airports and minesite accommodation.
“It is a more than reasonable expectation that mining companies have rates levied appropriately to support local communities, just as homeowners and other businesses do.
“Local Governments have a role to act upon the unique needs of their residents and to advocate for community benefits for these projects.”
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