Sunwater v Burdekin Shire Council

Sunwater, a non-exempt government corporation, sought judicial review of a decision by the Burdekin Shire Council imposing rates on lands it held within the shire. The Applicant is responsible for the commercial supply of water through its infrastructure to landowners in the Burdekin-Houghton Water Supply Scheme. The Respondent Council adopted a differential rating system for the 2002 financial year, which included a minimum general rate of $15,000 for lands categorised as Category G, which included the Applicant’s lands. The Applicant argued that the criteria adopted by the Council for categorising lands were not permissible under the Local Government Act 1993 and that irrelevant considerations were taken into account. The Applicant also contended that the Council acted unreasonably by categorising its lands in category G.

The court examined the criteria used by the Council to categorise lands and whether they were permissible under the Local Government Act 1993. The court found that the Council’s criteria, including social and environmental factors, access to services, and equity, were permissible. The court also considered whether irrelevant considerations were taken into account and whether the Council acted unreasonably. The court found that the Council’s decision to impose a minimum general rate of $15,000 on lands in category G was unreasonable because it did not take into account the specific circumstances of the Applicant’s lands. The court held that the decision to impose the minimum general rate was outside the range of responses open to the Council and was therefore unreasonable in the Wednesbury sense.

The court set aside the decision of the Respondent Council to impose a minimum general rate of $15,000 on lands falling into Category G-Commercial Water Business. The court directed the Respondent to re-calculate the general rates payable in respect of such lands and to notify the Applicant of the rates payable in light of the setting aside of the minimum general rate for category G lands. The court dismissed the Applicant’s application in all other respects and granted each party leave to apply in writing on the issue of costs on two days notice to the other party.