The Chamber of Minerals and Energy WA (CME) is calling on the Cook Government to act quickly to review the Local Government Act following a Supreme Court decision allowing councils to levy rates on land covered by miscellaneous licences.
The determination, handed down earlier this week, overturns a prior ruling of the State Administrative Tribunal and decades of precedent.
It comes just weeks after Local Government Minister Hannah Beazley prevented the Shire of Coolgardie from doubling rates on unimproved mining land and warned local government against treating the resources sector as a “cash cow”.
CME Chief Executive Officer Rebecca Tomkinson said the Supreme Court determination opened the door to millions of dollars of additional imposts at a time many WA resources projects were already facing severe cost pressures.
“Not only are WA resources projects contending with lengthy assessment processes, rising energy bills and subdued commodity prices – they are now facing further cost uncertainties as a result of this decision,” Ms Tomkinson said.
“The potential ramifications of this Supreme Court decision carry significant financial implications for our sector.
“CME believes an urgent legislative review is necessary to ensure the ruling complies with both the letter and the spirt of the Local Government Act.”
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.
“This decision potentially opens the door to local governments being able to charge rates on the same land twice, an outcome that would be clearly unfair,” Ms Tomkinson said.
“The resources sector already contributes around a third of the State’s general government revenue and spent almost $90 billion in WA in FY24 – including payments to more than 100 councils.
“In a submission to the Federal Parliament’s Inquiry into Local Government Sustainability last year, CME raised concerns about unsustainable local government funding models.
“This is the latest example of councils targeting the resources sector in an attempt to balance their budgets.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382