SHIRE OF YALGOO
[2016] WASAT 136
•15 NOVEMBER 2016
SHIRE OF YALGOO [2016] WASAT 136
| STATE ADMINISTRATIVE TRIBUNAL | Citation No: | [2016] WASAT 136 | |
| LOCAL GOVERNMENT ACT 1995 (WA) | |||
| Case No: | DR:225/2016 | 19 AUGUST 2016 | |
| Coram: | MS H LESLIE (MEMBER) | 15/11/16 | |
| 6 | Judgment Part: | 1 of 1 | |
| Result: | Rates raised by applicant for financial years 2015/2016 for relevant categories quashed | ||
| B | |||
| PDF Version |
| Parties: | SHIRE OF YALGOO |
Catchwords: | Rates minimum payment Rates differential rate settings Ministerial approval Quashing of rate |
Legislation: | Local Government (Financial Management) Regulations 1996, reg 52, reg 53 Local Government Act 1995 (WA), s 6.32(1), s 6,33(1), s 6.33(3), s 6.35, s 6.82(1), s 6.82(3), s 6.83 |
Case References: | Shire of Cue [2016] WASAT 91 |
Orders | Accordingly, the following orders are made under s 6.82(3) of the LG Act:,1. The general rate imposed by the Shire of Yalgoo upon rateable land within its district to be rated on unimproved value for the 2014/2015 financial year under s 6.32(1) of the Local Government Act 1995 (WA) is quashed pursuant to s 6.83 of that Act.,2. The general rate imposed by the Shire of Yalgoo upon rateable land within its district to be rated on gross rental value for the 2014/2015 financial year under s 6.32(1) of the Local Government Act 1995 (WA) is quashed pursuant to s 6.83 of that Act. |
Summary | The applicant had, in error, struck rates in two categories without Ministerial approval in circumstances where, under the Local Government Act 1995 (WA), Ministerial approval was required. The rates as struck were found to be unlawful and were quashed by the Tribunal. |
JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL ACT : LOCAL GOVERNMENT ACT 1995 (WA) CITATION : SHIRE OF YALGOO [2016] WASAT 136 MEMBER : MS H LESLIE (MEMBER) HEARD : 19 AUGUST 2016 DELIVERED : 15 NOVEMBER 2016 FILE NO/S : DR 225 of 2016 MATTER : SHIRE OF YALGOO
- Applicant
Catchwords:
Rates minimum payment Rates differential rate settings Ministerial approval Quashing of rate
Legislation:
Local Government (Financial Management) Regulations 1996, reg 52, reg 53
Local Government Act 1995 (WA), s 6.32(1), s 6,33(1), s 6.33(3), s 6.35, s 6.82(1), s 6.82(3), s 6.83
Result:
Rates raised by applicant for financial years 2015/2016 for relevant categories quashed
Summary of Tribunal's decision:
The applicant had, in error, struck rates in two categories without Ministerial approval in circumstances where, under the Local Government Act 1995 (WA), Ministerial approval was required. The rates as struck were found to be unlawful and were quashed by the Tribunal.
Category: B
Representation:
Counsel:
Applicant : N/A
Solicitors:
Applicant : N/A
Case(s) referred to in decision(s):
Shire of Cue [2016] WASAT 91
Application
1 The Shire of Yalgoo (Shire) applied under s 6.82(1) of the Local Government Act 1995 (WA) (LG Act) for an order that:
(a) the general rate imposed by the Shire upon rateable land within its district to be rated on unimproved value (UV) for the 2014/2015 financial year; and
(b) the general rate imposed by the Shire upon rateable land within its district to be rated on gross rental value (GRV) for the 2014/2015 financial year,
be quashed pursuant to section 6.82(3) of the Act.
2 The basis for the Shire's application is that differential rates and minimum payments imposed in respect of the following three categories, namely UV Mining, UV Exploration/Prospecting and Minimum Payment - GRV Townsites Vacant (as classified in the Shire's Annual Budget for the year ending 30 June 2015) did not comply with the requirements of the Act.
Jurisdiction
3 Section 6.82(1) of the LG Act provides that where there is a question of general interest as to whether a rate or service charge was imposed in accordance with this Act, the local government or any person may refer the question to the State Administrative Tribunal (Tribunal) to have it resolved.
4 Under section 6.82(3) of the LG Act, the Tribunal may make an order quashing a rate or service charge when, in its opinion, it has been improperly made or imposed.
5 Issues of the nature raised by the Shire's application are questions which qualify as questions 'of general interest as to whether a rate ... [has been] imposed in accordance with the LG Act' and matters capable of reference to the Tribunal under s 6.82(1) of the Act: Shire of Cue [2016] WASAT 91.
The issues
Differential general rates - unimproved value (UV) rates
6 Section 6.33(1) of the LG Act permits a local government to impose differential general rates. Section 6.33(1) provides as follows:
(1) A local government may impose differential general rates according to any, or a combination, of the following characteristics
(a) the purpose for which the land is zoned, whether or not under a local planning scheme or improvement scheme in force under the Planning and Development Act 2005; or
(b) a purpose for which the land is held or used as determined by the local government; or
(c) whether or not the land is vacant land; or
(d) any other characteristic or combination of characteristics prescribed.
|
|
| 6.28 |
| 35.75 |
| 18.99 |
8 Section 6.33(3) of the LG Act provides:
In imposing a differential general rate a local government is not to, without the approval of the Minister, impose a differential general rate which is more than twice the lowest differential general rate imposed by it. (Tribunal emphasis)
9 The differential general rates set by the Shire in respect of 'mining' leases and 'exploration/prospecting' licenses were more than twice the lowest differential general rate (being in respect of 'pastoral' land).
10 Although the Shire submitted a noncomplying initial application to obtain approval from the Minister for Local Government prior to imposing the differential general rates, it is acknowledged by the Shire that it did not obtain approval from the Minister as required by s 6.33(3) prior to the imposition of the differential general rates.
Minimum payments - gross rental value (GRV) townsites (vacant)
11 Section 6.35 of the LG Act governs the imposition of minimum payments. Section 6.35(1) provides:
Subject to this section, a local government may impose on any rateable land in its district a minimum payment which is greater than the general rate which would otherwise be payable on that land.
12 In striking the rate, the Shire imposed a minimum payment under s 6.35(1) with respect to GRV rated vacant townsite lots.
13 Section 6.35(4) of the LG Act provides:
A minimum payment is not to be imposed on more than the prescribed percentage of
(a) the number of separately rated properties in the district; or
(b) the number of properties in each category referred to in subsection (6),
unless the general minimum does not exceed the prescribed amount.
14 Section 6.35(5) of the Act provides:
If a local government imposes a differential general rate on any land on the basis that the land is vacant land it may, with the approval of the Minister, impose a minimum payment in a manner that does not comply with subsections (2), (3) and (4) for that land. (Tribunal emphasis)
15 The prescribed percentage for the purposes of s 6.35(4) is 50% (under reg 52 of the Local Government (Financial Management) Regulations 1996 (WA) (Regulations)). The prescribed amount of the general minimum for the 2014/2015 year was $200 (reg 53 of the Regulations).
16 The general minimum payment ($600) set by the Shire exceeded the prescribed amount ($200) and was imposed on 100% of the properties in the category GRV Townsites Vacant.
17 While the Shire submitted a noncomplying initial application to obtain approval from the Minister for Local Government prior to imposing the general minimum payment, it is acknowledged by the Shire that it did not obtain approval from the Minister as required by s 6.35(5) of the LG Act prior to the imposition of the general minimum payment.
Conclusions
18 The UV based differential general rates with respect to 'mining' leases and 'exploration/prospecting' licenses are unlawful as they are more than twice the lowest differential general rate imposed by the Shire, and were imposed without the approval of the Minister, in breach of s 6.33(3) of the LG Act.
19 The GRV based differential general rate is unlawful as it has been applied to more than the prescribed percentage of properties, and without the approval of the Minister, in breach of s 6.35(4).
Orders
Accordingly, the following orders are made under s 6.82(3) of the LG Act:
1. The general rate imposed by the Shire of Yalgoo upon rateable land within its district to be rated on unimproved value for the 2014/2015 financial year under s 6.32(1) of the Local Government Act 1995 (WA) is quashed pursuant to s 6.83 of that Act.
2. The general rate imposed by the Shire of Yalgoo upon rateable land within its district to be rated on gross rental value for the 2014/2015 financial year under s 6.32(1) of the Local Government Act 1995 (WA) is quashed pursuant to s 6.83 of that Act.
- I certify that this and the preceding [19] paragraphs comprise the reasons for decision of the State Administrative Tribunal.
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MS H LESLIE, MEMBER
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