Legislation clarifying that local governments cannot levy rates on miscellaneous licences has been welcomed by the Chamber of Minerals and Energy WA (CME).
The Local Government Amendment Bill, introduced to WA Parliament today, restores the intent of the Local Government Act following uncertainty created by a recent Supreme Court decision.
CME Director Policy and Advocacy Anita Logiudice said resources companies already made significant financial contributions to the councils and communities in which they operate.
“Resources operations are a major source of rates revenue for many regional councils based on valid notices issued on other types of mining tenure,” Ms Logiudice said.
“Our sector is also a major regional employer, supported more than 18,000 local WA businesses last year alone and invests millions of dollars in community infrastructure and initiatives.
“But resources companies face increasing headwinds of their own and require certainty and consistency in their cost bases to continue delivering for all West Australians.”
Ms Logiudice said the retrospective nature of the Bill would avoid fragmentation created by the Supreme Court decision and reinstate a consistent rates system across local governments.
“The refund provisions are also sensible to ensure industry is not disadvantaged by previous attempts to levy rates outside of what was always the intent and is now set to become the black letter law of the Local Government Act,” Ms Logiudice said.
Miscellaneous licences are generally used by resources operations to cover infrastructure such as access roads, power lines and mine site accommodation.
In many instances, miscellaneous licences sit on top of mining and exploration licences – which are already a source of revenue for councils.
“Levying rates twice on the same land is impractical and inequitable, a reality recognised by the legislative fix introduced today,” Ms Logiudice said.
“CME would support broader review of the Local Government Act to ensure ambiguous statutory wording does not give rise to similar attempts to levy rates outside of the intent of the legislation in future.
“Opportunities for local government boundary adjustments to create economies of scale, remove duplication and improve financial sustainability should also be explored.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382