Chapter 15 How are councils financed?
Introduction. The main sources of council finance are:• rates, of which there are 2 kinds— ordinary rates— special rates• charges• fees• grants• borrowings• income from business activities• income from land• income from other investments• sales of assets.This Chapter deals mainly with the making and collection of the different kinds of rates and the imposition of charges.
Part 1 gives a general overview of the principles of rating and explains the relationship between ordinary rates, special rates and charges.
A council must make an ordinary rate each year. The amount of the ordinary rate may differ according to the category of the land to which it applies and it may differ according to sub-categories within those categories.
A council has a discretion whether it will make a special rate. Special rates may be levied for services provided by the council (such as water supply) or for special purposes.
A council has 2 choices in determining the structure of a rate (whether an ordinary rate for a category or sub-category of land or a special rate). It may decide that the rate is to be wholly an ad valorem rate (that is, an amount in the dollar that is to be applied uniformly to the rateable value of all rateable land in its area subject to the rate). It may decide, instead, that a rate is to have a 2-part structure. The first part is to be a base amount that will be the same for each parcel of rateable land subject to the rate. This base amount will be the amount that the council determines to be the basic contribution required to cover the general operating costs of the council or to cover the cost of providing the specific service or facilities to which it relates. The second part is to be an ad valorem amount. The 2 parts are added together to produce the amount of the rate to be paid in respect of the rateable parcel.
If a council makes a rate with a 2-part structure, the application of the base amount for the rate (or the category or sub-category of the rate) must not produce more than 50% of the total revenue derived from the rate (or the category or sub-category of the rate).
Special provisions are made for the rating of vacant land.
The Chapter also enables the making and collection of charges. A charge may be made in relation to specified services provided by a council (such as the provision of water, sewerage or drainage services or the collection of garbage). A charge may be set at a level that enables part or full cost recovery or, in some cases, that exceeds costs.
A council may impose charges in addition to ordinary rates and special rates or in substitution for special rates that may be made for the same purposes as a charge.
A charge, when made, has the same characteristics as a rate concerning payment, the accrual of interest (if the charge remains unpaid) and the procedures that may be taken for its recovery.
The reasonable cost to the council of providing domestic waste management services must not be recovered by the ordinary rate. It must be obtained from the making and levying of a charge.
Part 1 An overview of rates and charges
491 Some sources of a council’s income
A council may, in accordance with this Chapter, obtain income from:• rates• charges• fees• grants• borrowings• investments.
492 What are the types of rates?
The types of rates that can be made by a council are:• ordinary rates• special rates.
493 Categories of ordinary rates and categories of land
(1) There are 4 categories of an ordinary rate and 4 categories of rateable land:• farmland• residential• mining• business.(2) These categories may, at a council’s discretion, be divided into sub-categories in accordance with section 529.
494 Ordinary rates must be made and levied annually
(1) A council must make and levy an ordinary rate for each year on all rateable land in its area.(2) Each category or subcategory of ordinary rate is to apply only to land of the same category or subcategory.
495 Making and levying of special rates
(1) A council may make a special rate for or towards meeting the cost of any works, services, facilities or activities provided or undertaken, or proposed to be provided or undertaken, by the council within the whole or any part of the council’s area, other than domestic waste management services.(2) The special rate is to be levied on such rateable land in the council’s area as, in the council’s opinion:(a) benefits or will benefit from the works, services, facilities or activities, or(b) contributes or will contribute to the need for the works, services, facilities or activities, or(c) has or will have access to the works, services, facilities or activities.Note. Under section 495, a council could, for example make and levy:• different special rates for different kinds of works, services, facilities or activities• different special rates for the same kind of work, service, facility or activity in different parts of its area• different special rates for the same work in different parts of its area.The amount of special rate will be determined according to the council’s assessment of the relationship between the cost or estimated cost of the work, service, facility or activity and the degree of benefit afforded to the ratepayer by providing or undertaking the work, service, facility or activity.
495A Strata lots and company titles taken to be separate parcels of land for annual charges
For the purposes of making or levying an annual charge under section 496, 496A or 501:(a) each lot in a strata plan that is registered under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986, and(b) each dwelling or portion of the kind referred to in section 547 (1),is taken to be a separate parcel of rateable land.
496 Making and levying of annual charges for domestic waste management services
(1) A council must make and levy an annual charge for the provision of domestic waste management services for each parcel of rateable land for which the service is available.(2) A council may make an annual charge for the provision of a domestic waste management service for a parcel of land that is exempt from rating if:(a) the service is available for that land, and(b) the owner of that land requests or agrees to the provision of the service to that land, and(c) the amount of the annual charge is limited to recovering the cost of providing the service to that land.
496A Making and levying of annual charges for stormwater management services
(1) A council may, in accordance with the regulations, make and levy an annual charge for the provision of stormwater management services for each parcel of rateable land for which the service is available.(2) Subsection (1) does not authorise or permit a council to make or levy an annual charge for the provision of stormwater management services for rateable land that is:(a) owned by the Crown, and(b) held under a lease for private purposes granted under the Housing Act 2001 or the Aboriginal Housing Act 1998.Note. Section 555 (1) (a) provides that land owned by the Crown is not rateable land unless it is held under a lease for a private purpose.
496B Making and levying of annual charges for coastal protection services
(1) A council may, in accordance with this Act and the regulations, make and levy an annual charge for the provision by the council of coastal protection services for a parcel of rateable land that benefits from the services, being services that relate to coastal protection works constructed:(a) by or on behalf of the owner or occupier (or a previous owner or occupier) of the parcel of land, or(b) jointly by or on behalf of:(i) the owner or occupier (or a previous owner or occupier) of the parcel of land, and(ii) a public authority or a council.(2) An annual charge for the provision of coastal protection services must be calculated so as to not exceed the reasonable cost to the council of providing those services (including any legal, insurance, engineering, surveying, project management, financing and similar costs associated with providing those services).Note. The coastal protection services for which an annual charge may be made and levied are services:(a) to maintain and repair coastal protection works, or(b) to manage the impacts of such works (such as changed or increased beach erosion elsewhere).See the definition of coastal protection service in the Dictionary.
(3) If a person is aggrieved by the amount of the annual charge, the person may appeal to the Land and Environment Court and that Court may determine the amount.(4) The fact that an appeal is pending does not in the meantime affect the levying of the annual charge to which the appeal relates and the charge may be recovered as if no appeal were pending.(5) If a person’s appeal is, in whole or in part, successful, the council must refund any amount paid in excess of a requirement for payment under this Act.(6) If the Land and Environment Court, in the course of determining an appeal under subsection (3), determines the reasonable cost to the council of providing coastal protection services in relation to particular coastal protection works, that determination is binding in relation to the calculation of the annual charge for all other parcels of land that benefit from those same services.(7) For the avoidance of doubt, a parcel of land benefits from the provision of coastal protection services even if:(a) the services relate to private coastal protection works (such as a seawall) wholly on the parcel or on a neighbouring parcel of private land, or(b) the services are carried out on land that is outside the council’s area.(8) Subsection (1) does not authorise or permit a council to make or levy an annual charge for the provision of coastal protection services for rateable land that is held under a lease for private purposes granted under the Aboriginal Housing Act 1998 or the Housing Act 2001.(9) The Minister administering the Coastal Protection Act 1979 is to issue guidelines relating to the making and levying of charges under this section. A council is to have regard to any such guidelines when making and levying such charges.
497 What is the structure of a rate?
A rate, whether an ordinary rate or a special rate, may, at a council’s discretion, consist of:(a) an ad valorem amount (which may, in accordance with section 548, be subject to a minimum amount of the rate), or(b) a base amount to which an ad valorem amount is added.
(1) The ad valorem amount of a rate is an amount in the dollar determined for a specified year by the council and expressed to apply:(a) in the case of an ordinary rate—to the land value of all rateable land in the council’s area within the category or sub-category of the ordinary rate, or(b) in the case of a special rate—to the land value of all rateable land in the council’s area or such of that rateable land as is specified by the council in accordance with section 538.(2) The ad valorem amount of a rate is to be levied on the land value of rateable land, except as provided by this or any other Act.(3) An ad valorem amount specified for a parcel of land may not differ from an ad valorem amount specified for any other parcel of land within the same category or subcategory unless:(a) the land values of the parcels were last determined by reference to different base dates, and(b) the Minister approves the different ad valorem amounts.Note. Land value is defined in the Dictionary for this Act. Generally, it is a value determined specially for rating purposes by the Valuer-General under the Valuation of Land Act 1916.A value other than land value may be used, for example, under section 127 of the Heritage Act 1977.
(1) A council may, in a resolution making a rate, specify a base amount of the rate, or a base amount for a category or sub-category of an ordinary rate.(2) The base amounts so specified may be the same or different amounts.(3) The appropriate base amount so specified is to form part of the rate levied on each separate parcel of rateable land subject to the rate.(4) A base amount specified for a parcel of land may not differ from a base amount specified for any other parcel of land within the same category or subcategory unless:(a) the land values of the parcels were last determined by reference to different base dates, and(b) the Minister approves the different base amounts.
500 Limit on revenue that can be raised from base amount
The amount specified as the base amount of a rate (or the base amount of the rate for a category or sub-category of an ordinary rate) must not be such as to produce more than 50 per cent of the total amount payable by the levying of the rate (or of the rate for the category or sub-category concerned) on all rateable land subject to the rate (or the rate for the category or sub-category concerned).
501 For what services can a council impose an annual charge?
(1) A council may make an annual charge for any of the following services provided, or proposed to be provided, on an annual basis by the council:• water supply services• sewerage services• drainage services• waste management services (other than domestic waste management services)• any services prescribed by the regulations.(2) A council may make a single charge for two or more such services.(3) An annual charge may be levied on each parcel of rateable land for which the service is provided or proposed to be provided.
A council may make a charge for a service referred to in section 496 or 501 according to the actual use of the service.
503 What is the relationship between rates and charges?
(1) A charge may be made:(a) in addition to an ordinary rate, and(b) in addition to or instead of a special rate.(2) If land is not rateable to a special rate for a particular service, a council may not levy a charge in respect of that land relating to the same service, unless the charge is limited to recovering the cost of providing the service to that land.
504 Domestic waste management services
(1) A council must not apply income from an ordinary rate towards the cost of providing domestic waste management services.(1A) Subsection (1) does not prevent income from an ordinary rate from being lent (by way of internal loan) for use by the council in meeting the cost of providing domestic waste management services.(2) Income to be applied by a council towards the cost of providing domestic waste management services must be obtained from the making and levying of annual charges or the imposition of charges for the actual use of the service, or both.(3) Income obtained from charges for domestic waste management must be calculated so as to not exceed the reasonable cost to the council of providing those services.
Part 2 Limit of annual income from rates and charges
This Part applies to:(a) general income, that is, income from ordinary rates, special rates and annual charges, other than:(i) water supply special rates and sewerage special rates, and(ii) charges for water supply services and sewerage services, and(iii) annual charges for waste management services, including annual charges for domestic waste management services, and(iv) annual charges referred to in section 611, and(v) annual charges for stormwater management services, and(vi) annual charges for coastal protection services, and(b) annual charges made and levied towards the cost of providing domestic waste management services, and(c) annual charges made and levied towards the cost of providing stormwater management services.
506 Variation of general income
The Minister may, by order published in the Gazette specify the percentage by which councils’ general income for a specified year may be varied.
507 Variation of annual charges for domestic waste management services
The Minister may, by order published in the Gazette:(a) specify the percentage by which the amounts of annual charges made by councils for domestic waste management services for a specified year may be varied, and(b) impose conditions with respect to the variation of those charges.
508 Orders under secs 506 and 507
(1) The year specified in an order under section 506 or 507 may be the year in which the order is published in the Gazette or a later year.(2) The Minister may, by instrument in writing given to a council:(a) specify the percentage by which the council’s general income or the amount of an annual charge for domestic waste management services, or both, for a specified year (being the year in which the instrument is given or a later year) may be varied, and(b) impose conditions with respect to the variation of that percentage.(3) An instrument made under subsection (2) takes effect on the day it is signed by the Minister.(4) Subject to subsection (5), a percentage specified in an order under section 506 or 507 applies to all councils uniformly, but does not apply to a council specified (in the order by which the percentage is specified) as being a council to which the percentage does not apply.(5) A percentage specified in an order under section 506 or 507 for a year does not apply, and (if relevant) is taken never to have applied, to a council to which a percentage specified under subsection (2) for that year applies, whether the order specifying the percentage was made before, on or after the day on which the instrument specifying the percentage under subsection (2) was made.(5A) Subject to section 508A (6), a percentage specified in an order under section 506 or 507 for a year does not apply, and (if relevant) is taken never to have applied, to a council to which a determination under section 508A applies for that year, whether the order specifying the percentage was made before, on or after the day on which the determination was made.(6) The Minister may specify a percentage by way of increase or decrease or a nil percentage for the purposes of section 506 or 507 or this section.(7) The Minister may, by order published in the Gazette, specify that no limitation is to apply for the purposes of section 506 or 507 or this section for a specified year.
508A Special variation over a period of years
(1) The Minister may, by instrument in writing given to a council, determine that the council’s general income, or the amount of an annual charge for domestic waste management services provided by the council, or both, for a specified period consisting of two or more years, may be varied by a specified percentage over the whole period.(2) The specified period must not exceed 7 years, but this subsection does not prevent a further determination being made that takes effect after that period.(3) The determination may be made only on the application of the council made in accordance with any applicable guidelines issued by the Director-General under this Act.(4) The determination may include conditions with respect to the variation.(5) Without limiting subsection (4), the conditions of the determination may specify the percentage by which the council’s general income, or the amount of the annual charge for domestic waste management services provided by the council, may be varied for a specified year to which the determination applies.(6) If, for a year to which the determination applies in respect of:(a) the council’s general income—the percentage specified under section 506 for that year is greater than the percentage specified in the conditions of the determination, the percentage specified under that section in respect of the council’s general income is taken to be substituted for that specified in the conditions, or(b) the amount of the annual charge for domestic waste management services provided by the council—the percentage specified under section 507 for that year is greater than the percentage specified in the conditions of the determination, the percentage specified under that section in respect of the annual charge is taken to be substituted for that specified in the conditions.(7) Subject to any later variations made to the determination, if the percentage (the general percentage) specified under section 506 or 507 is substituted under subsection (6) for a year:(a) the percentage specified under this section for the whole period is taken to be increased by the amount necessary to take into account the increase due to the substitution of the general percentage for that year, and(b) the appropriate percentage for the remaining years is to be applied to the amount of the council’s general income, or of the annual charge for domestic waste management services provided by the council, taking into account the increase due to that substitution.(8) The Minister may, by instrument in writing served on the council:(a) vary the determination, including, for example, by varying or revoking any conditions of the determination or by including new conditions, or(b) revoke the determination.(9) The determination may be varied or revoked only:(a) on the application of the council made in accordance with any applicable guidelines issued by the Director-General under this Act, or(b) on the Minister’s own initiative if the Minister is satisfied that the council has contravened any conditions of the determination or any applicable guidelines issued by the Director-General under this Act.
509 Maximum general income for a year
(1) A council must not make rates and charges for a year so as to produce general income of an amount that exceeds the notional general income of the council for the previous year as varied by the percentage (if any) applicable to the council under section 506, 508 (2) or 508A for the year for which the rates and charges are made, except as provided by section 511 or 511A.(2) The notional general income of a council for the previous year is the amount that would have been derived if the same rates and charges as were made to produce the general income for that previous year had been so made but, in the case of rates, had been made in respect of:(a) the valuations of rateable land in the council’s valuation record applicable as at 1 July in that previous year and required under this Act to be used in that previous year for the making and levying of rates (not including valuations of those parcels of rateable land for which supplementary valuations referred to in paragraph (b) have been furnished), and(b) supplementary valuations of rateable land having the same base date as those valuations and furnished to the council under the Valuation of Land Act 1916 during that previous year, and(c) any estimates of increase in value of rateable land that are provided to the council under section 513 in respect of that previous year.
510 Maximum annual charge for domestic waste management services
(1) A council must not make an annual charge for domestic waste management services for a parcel of rateable land that exceeds the annual charge for the parcel for the previous year as varied by the percentage (if any) applicable to the council under section 507, 508 (2) or 508A for the year for which the charge is made.(2) The annual charge for a parcel of land for a previous year:(a) in the case of a parcel for which a charge has been made for part of the year only, is taken to be the charge that was actually made, multiplied by 365 and divided by the number of days in respect of which the charge was made, and(b) in the case of a parcel for which no charge was actually made for the previous year, is taken to be the charge that was actually made for that year in relation to a comparable parcel of land (that is, a parcel of land of the same classification, of a similar size and in the same general locality).
510A Maximum annual charge for stormwater management services
(1) The regulations are to prescribe the maximum annual charge that a council may levy for the provision of stormwater management services for parcels of land in respect of which such a charge may be levied.(2) The annual charge for the provision of stormwater management services for a parcel of land in respect of which such a charge may be levied must not exceed the maximum annual charge prescribed by the regulations under subsection (1).
511 Catching up of shortfall in general income
(1) If the rates and charges made by a council for a year that produce its general income produce an amount of general income that is less than the maximum amount permissible under section 509 for that year because the council did not apply a full percentage increase applicable to it under section 506, 508 (2) or 508A for the year for which the rates and charges were made, the council may make rates and charges for either or both of the next 2 years after the year for which the shortfall occurred so as to produce the maximum amount so permissible of the general income plus the whole or any part of the shortfall.(2) An amount of a shortfall caught up in accordance with this section may be caught up once only.
511A Catching up of income lost due to reductions in valuation
(1) This section applies to a council that cannot recover or retain a part of the maximum permissible general income determined under this Part for a year because, after the determination is made, a valuation used in making a rate is reduced on objection under Part 3, or appeal under Part 4, of the Valuation of Land Act 1916. The part of the maximum permissible general income that cannot be recovered or retained is referred to in this section as the unrecovered amount.(2) The council may increase the maximum permissible general income determined under this Part for a year by any unrecovered amount for a previous year.
512 Effect of contravening section 509, 510, 510A, 511 or 511A
(1) If a council contravenes section 509, 510, 510A, 511 or 511A in making a rate or charge for a year:(a) the contravention does not affect the validity of the rate or charge, but(b) rates and charges made for the following year by the council are invalid for all purposes unless:(i) before the rates and charges were made the council submitted to the Minister such information respecting the rates and charges proposed to be made for that following year as the Minister may require and the Minister, by order published in the Gazette, approved of their being made, and(ii) the rates and charges conform with the Minister’s approval.(iii) (Repealed)(2) The Minister may, by order published in the Gazette, exempt a specified council from the operation of subsection (1) (b) for a specified year.(3) Section 712 does not prevent a person’s liability for a rate or charge that is invalid because of subsection (1) (b) from being disputed at any time on the ground of that invalidity.
513 Estimates of increases and decreases in value for purposes of notional rate income
(1) A council may, at any time after 31 January in any year but before 31 May in that year, request the Valuer-General to provide:(a) estimates of increases and decreases in values for parcels of rateable land for which supplementary valuations are required to be furnished under the Valuation of Land Act 1916 but which, before the date of the request, have not been so furnished, and(b) estimates of increases and decreases in values for parcels of rateable land for which supplementary valuations have been or are required to be furnished under the Valuation of Land Act 1916 but which have or will have a different base date from those used for rating purposes for that year because of a general valuation furnished in that year for the council’s area.(2) The Valuer-General must provide the estimates within 1 month after the date of the request.(3) An estimate must be made with respect to the same base date as the valuations used for rating purposes for the year in which the request is made.(4) An estimate may relate to all parcels of rateable land of the class for which a kind of ordinary rate was made for the relevant year by the council.
Rates and Charges
Types
Levied on or payable by
Differentiation
Structure
Application
Ordinary rates (s 492)
All rateable land (ss 554, 555, 556)
4 Categories
(ss 493, 514)Base amount may yield up to 50% of income from rate, category or subcategory (s 500)
Ordinary rate must be made each year (s 494)
Ad valorem amount may be the same or different for categories (s 528) and the same or different for subcategories (s 529)
Special rate may be made in addition to ordinary rate (s 495 and see note to s 495)
Farmland
(s 515)Residential
(s 516)Mining
(s 517)Business
(s 518)Optional subcategories
(ss 493, 529)Special rates (s 492)
Rateable land that
• benefits from works, etc• contributes to need for works, etc• has access to works, etc (ss 495, 498, 538)
(s 495)Annual charges for domestic waste management services (s 496)
Each parcel of rateable land for which the service is available (s 496)
A council may determine differing amounts for the same charge
(s 541)Charge must be made each year (s 496)
Other annual charges (s 501)
Each parcel of rateable land for which the service is provided or proposed to be provided (s 501)
A council may determine differing amounts for the same charge
(s 541)Charge may be a single amount, a rate per unit, or a combination (s 540)
Charge may be of differing amounts (s 541)
A minimum amount may be fixed (s 542)
A single charge may be imposed for two or more services (s 501)
Criteria for determining amount (s 539)
Charge may be made
• in addition to ordinary rate and• in addition to or instead of special rate (s 503)Charges for actual use (s 502)
The user of the service (s 502)
According to the nature of the service
514 Categorisation of land for purposes of ordinary rates
Before making an ordinary rate, the council must have declared each parcel of rateable land in its area to be within one or other of the following categories:• farmland• residential• mining• business.Note. Land falls within the “business” category if it cannot be categorised as farmland, residential or mining. The main land uses that will fall within the “business” category are commercial and industrial.
515 Categorisation as farmland
(1) Land is to be categorised as farmland if it is a parcel of rateable land valued as one assessment and its dominant use is for farming (that is, the business or industry of grazing, animal feedlots, dairying, pig-farming, poultry farming, viticulture, orcharding, bee-keeping, horticulture, vegetable growing, the growing of crops of any kind, forestry or aquaculture within the meaning of the Fisheries Management Act 1994, or any combination of those businesses or industries) which:(a) has a significant and substantial commercial purpose or character, and(b) is engaged in for the purpose of profit on a continuous or repetitive basis (whether or not a profit is actually made).(2) Land is not to be categorised as farmland if it is rural residential land.(3) The regulations may prescribe circumstances in which land is or is not to be categorised as farmland.
516 Categorisation as residential
(1) Land is to be categorised as residential if it is a parcel of rateable land valued as one assessment and:(a) its dominant use is for residential accommodation (otherwise than as a hotel, motel, guest-house, backpacker hostel or nursing home or any other form of residential accommodation (not being a boarding house or a lodging house) prescribed by the regulations), or(b) in the case of vacant land, it is zoned or otherwise designated for use under an environmental planning instrument (with or without development consent) for residential purposes, or(c) it is rural residential land.(1A) For the purposes of this section, a boarding house or a lodging house means a building wholly or partly let as lodging in which each letting provides the tariff-paying occupant with a principal place of residence and in which:(a) each tariff charged does not exceed the maximum tariff for boarding houses or lodging houses for the time being determined by the Minister by order published in the Gazette for the purposes of this subsection, and(b) there are at least 3 tariff-paying occupants who have resided there for the last 3 consecutive months, or any period totalling 3 months during the last year,and includes a vacant building that was so let immediately before becoming vacant, but does not include a residential flat building, licensed premises, a private hotel, a building containing serviced apartments or a backpacker hostel or other tourist establishment.(2) The regulations may prescribe circumstances in which land is or is not to be categorised as residential.
(1) Land is to be categorised as mining if it is a parcel of rateable land valued as one assessment and its dominant use is for a coal mine or metalliferous mine.(2) The regulations may prescribe circumstances in which land is or is not to be categorised as mining.
518 Categorisation as business
Land is to be categorised as business if it cannot be categorised as farmland, residential or mining.
518A Strata lots and company titles taken to be separate parcels of land for categorisation
For the purposes of this Part:(a) each lot in a strata plan that is registered under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986, and(b) each dwelling or portion of the kind referred to in section 547 (1),is taken to be a separate parcel for the purposes of categorisation.
(1) Definitions
In this section, mixed development land and non-residential land have the same meanings as in section 14BB of the Valuation of Land Act 1916.(2) Categorisation of parts of mixed development land
If a valuation is furnished under the Valuation of Land Act 1916 for mixed development land:(a) the part of the land that is non-residential land is taken to have been categorised as business, and(b) the part of the land that is not non-residential land is taken to have been categorised as residential,despite sections 515–518.(3) Sub-categories
The council may determine a sub-category for a part of land to which subsection (2) applies according to the category determined by that subsection for the part.(4) Apportionment of rates and charges
A rate, the base amount of a rate, or the minimum amount of a rate or of a charge, that is made and levied according to categories or sub-categories of land is to apply to a parcel of mixed development land according to the percentages represented by the apportionment factor for the parcel ascertained under section 14X of the Valuation of Land Act 1916.
519 How is vacant land to be categorised?
If vacant land is unable to be categorised under section 515, 516 or 517, the land is to be categorised:(a) if the land is zoned or otherwise designated for use under an environmental planning instrument—according to any purpose for which the land may be used after taking into account the nature of any improvements on the land and the nature of surrounding development, or(b) if the land is not so zoned or designated—according to the predominant categorisation of surrounding land.
520 Notice of declaration of category
(1) A council must give notice to each rateable person of the category declared for each parcel of land for which the person is rateable.(2) The notice must be in the approved form and must:(a) state that the person has the right to apply to the council for a review of the declaration that the land is within the category stated in the notice, and(b) state that the person has the right to appeal to the Land and Environment Court if dissatisfied with the council’s review, and(c) refer to sections 525 and 526.
521 When does the declaration of a category take effect?
A declaration that a parcel of land is within a particular category takes effect from the date specified for the purpose in the declaration.
522 When does the declaration of a category cease?
A declaration that a parcel of land is within a particular category ceases when a subsequent declaration concerning the land takes effect.
523 When are the declarations of categories reviewed?
(1) A council need not annually review a declaration that a parcel of land is within a particular category, but may review a declaration:(a) as part of a general review of the categorisation of all or a number of parcels of land, or(b) because it has reason to believe that a parcel of land should be differently categorised.(2) A council must review a declaration if required to do so in accordance with section 525 by a person who is rateable in respect of a parcel of land to which the declaration applies.
524 Notice of change of category
A rateable person (or the person’s agent) must notify the council within 30 days after the person’s rateable land changes from one category to another.
525 Application for change of category
(1) A rateable person (or the person’s agent) may apply to the council at any time:(a) for a review of a declaration that the person’s rateable land is within a particular category for the purposes of section 514, or(b) to have the person’s rateable land declared to be within a particular category for the purposes of that section.(2) An application must be in the approved form, must include a description of the land concerned and must nominate the category the applicant considers the land should be within.(3) The council must declare the land to be within the category nominated in the application unless it has reasonable grounds for believing that the land is not within that category.(4) If the council has reasonable grounds for believing that the land is not within the nominated category, it may notify the applicant of any further information it requires in order to be satisfied that the land is within that category. After considering any such information, the council must declare the category for the land.(5) The council must notify the applicant of its decision. The council must include the reasons for its decision if it declares that the land is not within the category nominated in the application.(6) If the council has not notified the applicant of its decision within 40 days after the application is made to it, the council is taken, at the end of the 40-day period, to have declared the land to be within its existing category.
526 Appeal against declaration of category
(1) A rateable person who is dissatisfied with:(a) the date on which a declaration is specified, under section 521, to take effect, or(b) a declaration of a council under section 525,may appeal to the Land and Environment Court.(2) An appeal must be made within 30 days after the declaration is made.(3) The Court, on an appeal, may declare the date on which a declaration is to take effect or the category for the land, or both, as the case requires.
527 Adjustment of rates following change in category
A council must make an appropriate adjustment of rates paid or payable by a rateable person following a change in category of land.
528 Rate may be the same or different for different categories
(1) The ad valorem amount (the amount in the dollar) of the ordinary rate may be the same for all categories of land or it may be different for different categories.(2) The regulations may provide that the ad valorem amount of the ordinary rate for land categorised as mining is to be not more or less than a specified percentage of the ad valorem amount of the ordinary rate for land categorised as business. The regulations may apply to all councils or one or more councils specified in the regulations.
529 Rate may be the same or different within a category
(1) Before making an ordinary rate, a council may determine a sub-category or sub-categories for one or more categories of rateable land in its area.(2) A sub-category may be determined:(a) for the category “farmland”—according to the intensity of land use, the irrigability of the land or economic factors affecting the land, or(b) for the category “residential”—according to whether the land is rural residential land or is within a centre of population, or(c) for the category “mining”—according to the kind of mining involved, or(d) for the category “business”—according to a centre of activity.Note. In relation to the category “business”, a centre of activity might comprise a business centre, an industrial estate or some other concentration of like activities.(3) The ad valorem amount (the amount in the dollar) of the ordinary rate may be the same for all land within a category or it may be different for different sub-categories.(4) Land may be taken to be irrigable for the purposes of subsection (2) (a) if, and only if, it is the subject of a water right within the meaning of the Valuation of Land Act 1916.
531 What provisions of this Part apply to the determination of sub-categories?
(1) Sections 519–527 apply to the determination of sub-categories for a category of rateable land in the same way as those sections apply to the declaration of a category.(2) Notice of determination of a sub-category may be given in the same notice as the notice of declaration of a category.
531A Adjustment of charges following change in category
If the amount of a charge paid or payable by a person is determined by reference (or partly by reference) to a category or sub-category of land declared by the council under Part 3, the council must make an appropriate adjustment of the charge following a change in category or sub-category of the land.
531B Aggregation of certain parcels subject to a charge
(1) If the council is of the opinion that the levying of a charge:(a) would apply unfairly, and(b) could cause hardship to a person who is liable to the charge in respect of two or more separate parcels of land,it may treat the parcels as being a single parcel and levy the charge accordingly.(2) Separate parcels may be treated as being a single parcel under this section only if each separate parcel is subject to the same category or sub-category declared by the council under Part 3.(3) A council must not treat separate parcels as being a single parcel under this section:(a) if each parcel is a parcel on which a dwelling is erected or a parcel that comprises (or substantially comprises) a dwelling in a residential flat building, or(b) if the parcels are a combination of parcels referred to in paragraph (a).
Part 4 Making of rates and charges
532 Publication of draft operational plan
A council must not make a rate or charge until it has given public notice (in accordance with section 405) of its draft operational plan for the year for which the rate or charge is to be made and has considered any matters concerning the draft operational plan (in accordance with that section).
533 Date by which a rate or charge must be made
A rate or charge must be made before 1 August in the year for which the rate or charge is made or before such later date in that year as the Minister may, if the Minister is of the opinion that there are special circumstances, allow.
534 Rate or charge to be made for a specified year
Each rate or charge is to be made for a specified year, being the year in which the rate or charge is made or the next year.
535 Rate or charge to be made by resolution
A rate or charge is made by resolution of the council.
536 What criteria are relevant in determining the base amount?
(1) In determining a base amount of a rate, the council must have regard to (but is not limited to) the following:• its general administration and overhead costs• the extent to which projected ad valorem rates on individual properties do not reflect the cost of providing necessary services and facilities• the level of grant or similar income available to provide necessary services and facilities• the degree of congruity and homogeneity between the values of properties subject to the rate and their spread throughout the area• whether a rate that is wholly an ad valorem rate would result in an uneven distribution of the rate burden because a comparatively high proportion of assessments would bear a comparatively low share of the total rate burden• in the case of a special rate—the cost of providing the works, services, facilities or activities to the parcels of land subject to the rate (ignoring the rateable value of those parcels).(2) The council, in having regard to its general administration and overhead costs, must use net costs, with income being included in the calculation of standard costs for all community service functions, library services, recreational and cultural facilities and amenities and the like.
537 Form of resolution specifying base amounts of rates
In the resolution that specifies a base amount of a rate, or the base amount of a rate for a category or sub-category of an ordinary rate, the council must state:(a) the amount in dollars of the base amount, and(b) the percentage, in conformity with section 500, of the total amount payable by the levying of the rate, or the rate for the category or sub-category concerned of the ordinary rate, that the levying of the base amount will produce.
538 Form of resolution for special rate
(1) In the resolution that makes a special rate, the council must state whether the special rate is to be levied on all rateable land in the council’s area or on only a part of that land.(2) If the special rate is to be levied on only a part of that land, the council must specify in the resolution the part on which it is to be levied.
539 What criteria are relevant in determining the amount of a charge?
(1) In determining the amount of a charge for a service, the council may have regard to (but is not limited to) the following:• the purpose for which the service is provided• the nature, extent and frequency of the service• the cost of providing the service• the categorisation for rating purposes of the land to which the service is provided• the nature and use of premises to which the service is provided• the area of land to which the service is provided• in the case of water supply services—the quantity of water supplied.(2) The amount of a charge need not be limited to recovering the cost of providing the service for which the charge is made, except as provided by sections 503 (2) and 504 (3).
The amount of a charge may be expressed as a single amount or as a rate per unit or as any combination of them.Note. For example, the amount of a charge for a water supply service could be a fixed amount, a rate per kilolitre, or a combination of them.
541 Differing amounts of a charge
A council may determine differing amounts for the same charge.
542 Minimum amounts of charges
A council may, in a resolution making a charge, specify a minimum amount of the charge or, if the council has determined differing amounts for the same charge, minimum amounts for each such differing amount.
543 Each form of rate and each charge to have its own name
(1) A council must, when making an ordinary rate, give a short separate name for each amount of the ordinary rate.(2) A council must, when making a special rate, give the special rate a short name.(3) A council must, when making a charge, give a short separate name for each amount of the charge.Note. The names given to the ordinary rate could include names like:Farmland—Ordinary
Farmland—Poultry farms
Residential—A
Residential—B
The names given to special rates could include names like:
Upper Smithtown water rate
Lower Smithtown water rate
Leisure centre—primary rate
Leisure centre—secondary rate
The names given to charges could include names like:
Waste management services—domestic
Waste management services—commercial
544 Inclusion of names in rates and charges notices
A council must include the name of each rate and charge, in full or in an abbreviated form, in the rates and charges notice by which the rate or charge is levied.
(1) The Minister may authorise a council to do such things as may be necessary to cure an irregularity in the making or levying of a rate or charge.(2) The Minister may declare, by order published in the Gazette, that a rate or charge that would otherwise be invalid because of a provision of this Part is taken to have been validly made from the time it purported to have been made. Such an order has effect according to its tenor.(3) The Minister may not make such an order unless, in the Minister’s opinion, the rate or charge concerned is invalid only because of a minor and technical breach of one or more of the provisions of this Part.(4) The Minister may make such an order even though proceedings in relation to the validity have commenced.
Some steps relating to the making of rates and charges
Council requests Valuer-General to estimate increase in value of land subject to supplementary valuations. (This may be done after 31 January but before 31 May)
s 513
Minister specifies % (if any) by which last year’s general income and annual charges for domestic waste management services are to vary
s 506
Council prepares draft operational plan which includes the council’s revenue policy for the next year
s 405
Council publicly exhibits draft operational plan
s 405 (3)
Public notice of draft operational plan for not less than 28 days
ss 405 (3), 532
Council considers submissions concerning draft operational plan
ss 405 (5), 706 (2)
Council adopts operational plan
s 405 (1)
Council makes rates and charges by resolution
ss 535, 537, 538
1 July
1 Aug
Final day for making of rates and charges for current year (unless Minister allows a later day)
s 533
Rates levied by service of rates and charges notice
s 546
31 Aug
1st quarterly instalment of rates and charges payable (unless rate notice not served by 1 August)
s 562
Part 5 Levying of rates and charges
546 How is a rate or charge levied?
(1) A rate or charge is levied on the land specified in a rates and charges notice by the service of the notice.(2) The notice may be served at any time after 1 July in the year for which the rate or charge is made or in a subsequent year.(3) A notice that is required to effect an adjustment of rates or charges may be served in the year for which the rate or charge is made or a subsequent year.(4) The notice may include more than one rate, more than one charge and more than one parcel of land.(5) It is not necessary to specify the name of the rateable person or the person liable to pay the charge in the notice if the council does not know the person’s name.
547 Method of rating dwellings under company title
(1) For the purposes of this Act:(a) a person who, because of the ownership of shares in a company, is entitled to occupy a dwelling in, or a portion of, a building containing two or more such dwellings or portions is taken to be the owner of land (or two or more persons who, because of the ownership of the shares in a company, are entitled to occupy the same dwelling in or portion of, such a building are taken together to be the owners of land), and(b) the land value of the land of which the person is (or the persons are) taken to be the owner (or owners) is that proportion of the land value of the land on which the building is erected as the number of shares in the company owned by the person (or persons) bears to the total number of shares issued by the company.(2) The secretary of such a company must notify the council of:(a) the names and addresses of owners of shares in the company and of the number of shares issued to each owner, and(b) changes in ownership of any shares in the company.(3) A rate or charge, to the extent to which it is payable by the owners of shares in accordance with this section, is not also payable by the company in which those shares are held.Note. The rating of land under strata title is provided for:• in the case of land under the Strata Schemes (Freehold Development) Act 1973—in Part 4 of that Act• in the case of land under the Strata Schemes (Leasehold Development) Act 1986—in Part 4 of that Act.
(1) A council, in a resolution making a rate consisting of an ad valorem amount:(a) may specify a minimum amount of the rate which must be levied in respect of each separate parcel, or(b) may specify:(i) a minimum amount of the rate which must be levied in respect of each separate parcel, other than a separate parcel consisting of vacant land, and(ii) a minimum amount of the rate, being less than the minimum amount of rate specified under subparagraph (i), which must be levied in respect of each separate parcel consisting of vacant land, or(c) may specify:(i) a minimum amount of the rate which must be levied in respect of each separate parcel, other than a separate parcel consisting of vacant land, and(ii) a minimum amount of the rate, being less than the minimum amount of the rate specified under subparagraph (i), which must be levied in respect of each separate parcel consisting of vacant land, other than a separate parcel consisting of vacant flood liable land or vacant coastal hazard liable land, and(iii) a minimum amount of the rate, being less than the minimum amount of the rate specified under subparagraph (ii), which must be levied in respect of each separate parcel of vacant flood liable land or vacant coastal hazard liable land.(2) If a council makes an ordinary rate for different categories or sub-categories of land, it may specify a different minimum amount for each category or sub-category of land.(3) Except as provided by subsection (4), the minimum amount of a rate is to be:(a) in respect of an ordinary rate, such amount as is determined by the council, not exceeding $259 or such greater amount as may be prescribed by the regulations or, in the case of a rate for which a particular council may, under subsection (1) or (2), specify a minimum amount, such greater amount as the Minister may determine by instrument in writing, or(b) in respect of any other rate (not being a water supply special rate or a sewerage special rate), such amount as is determined by the council, not exceeding $2 or such greater amount as the Minister may determine by instrument in writing given to the council.(4) If the minimum amount of an ordinary rate for the previous year exceeded the amount prescribed or determined in respect of such a rate under subsection (3) (a), the council may determine the minimum amount of the ordinary rate in accordance with subsection (5).(5) The minimum amount of the ordinary rate must be of such amount as is determined by the council, not exceeding the amount of the minimum ordinary rate for the previous year increased by the percentage (if any) specified in respect of the council under this Act.(6) A minimum amount of a rate is not invalid because:(a) the minimum amount is levied on the whole or any part of the land subject to the rate, or(b) of the size of the minimum amount.(7) A council may not specify a minimum amount of a rate consisting of a base amount to which an ad valorem amount is added.(8) A minimum amount of a rate specified for a parcel of land may not differ from a minimum amount specified for any other parcel of land within the same category or sub-category unless:(a) the land values of the parcels were last determined by reference to different base dates, and(b) the Minister approves the different minimum amounts.
548A Aggregation of values of certain parcels subject to rates containing base amounts
(1) If the council is of the opinion that the levying of a minimum rate or of a rate containing a base amount:(a) would apply unfairly, and(b) could cause hardship to a rateable person who is rateable in respect of two or more separate parcels of land subject to the rate,it may aggregate the land values of such of the parcels as it determines and levy the rate on the aggregated land values.(2) Land values may be aggregated under this section for separate parcels of land only if each separate parcel is subject to:(a) the same category or subcategory of the same ordinary rate, or(b) the same special rate.(3) A council must not aggregate the land values of two or more separate parcels of land:(a) if each parcel is a parcel on which a dwelling is erected or a parcel that comprises (or substantially comprises) a dwelling in a residential flat building, or(b) if the parcels are a combination of parcels referred to in paragraph (a).
549 Reduction of rates containing base amounts if levied on vacant land
(1) A council may determine that a rate (whether an ordinary rate or a special rate) consisting of a base amount to which an ad valorem amount is added is to be levied on:(a) vacant land, or(b) vacant land that has suffered physical damage (such as flood liable or coastal hazard affected land), or(c) land prescribed by the regulations for the purposes of this section,in accordance with this section.(2) If:(a) the rate were to be levied on land on the basis that the rate consisted of only the ad valorem amount, and(b) the amount payable as a consequence of levying the ad valorem amount on the land would be less than $250 (or such other amount as may be prescribed by the regulations),the rate payable in respect of the land is $250 (or such other amount as may be prescribed by the regulations) or the base amount of the rate, whichever is the lesser.
550 Charge of rates and charges on land
(1) A rate or charge levied under this Act on land (including any interest accrued on the rate or charge as referred to in section 566) and any costs awarded to the council by a court in proceedings to recover the rate or charge are a charge on the land.(2) The charge ranks on an equal footing with a charge on the land under any other Act but takes priority over any other charge or encumbrance.(3) The charge does not affect:(a) the estate of the Crown in land owned by the Crown, or(b) the estate of a Crown lessee if the lease is granted after the rate or charge was levied (whether or not the land was previously held under a lease from the Crown).(4) The charge does not affect a bona fide purchaser for value who made due inquiry at the time of purchase but had no notice of the liability. A purchaser who has obtained a certificate under section 603 is taken to have made due inquiry.(5) The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900.
Division 2 Special rates and charges relating to water supply, sewerage and drainage
This Division applies to a special rate or charge that is made in connection with water supply, sewerage or drainage services that are actually being provided by the council.
552 What land may be subject to a water supply special rate or charge?
(1) A special rate or charge relating to water supply may be levied on:(a) land that is supplied with water from a water pipe of the council, and(b) land that is situated within 225 metres of a water pipe of the council whether the land has a frontage or not to the public road (if any) in which the water pipe is laid, and although the land is not actually supplied with water from any water pipe of the council.(2) A special rate or charge relating to water supply may not be levied on land unless water could be supplied to some part of the land from a standpipe at least 1 metre in height from the ground level, if such a pipe were laid and connected to the council’s mains.(3) A special rate or charge relating to sewerage may be levied on all land except:(a) land which is more than 75 metres from a sewer of the council and is not connected to the sewer, and(b) land from which sewage could not be discharged into any sewer of the council.(4) A special rate or charge relating to drainage may be levied on rateable land that is within the basin served by the drainage works.
553 Time at which land becomes subject to special rate or charge
Land does not become subject to a special rate or charge to which this Division applies by virtue of the extension by a council of a water pipe, sewer or drain:(a) in the case of a special rate or charge relating to water supply—until 21 days after notice is given by the council in the Gazette of the extension of the water pipe or until the date on which the land is connected to the council’s mains, whichever is the earlier, or(b) in the case of a special rate or charge relating to sewerage—until 60 days after notice is given by the council in the Gazette of the extension of the sewer or until the date on which the land is connected to the sewer, whichever is the earlier, or(c) in the case of a special rate or charge relating to drainage—until notice is given by the council in the Gazette of the extension of the drain.
553A Special rates and charges not payable in relation to land provided with private water supply or sewerage
(1) A special rate or charge is not payable in relation to any land in respect of the supply of water, or the provision of a sewerage service, during the term of any contract in that regard entered into between the owner of the land and a licensed retail supplier within the meaning of the Water Industry Competition Act 2006.(2) If:(a) the council is a retailer of last resort within the meaning of the Water Industry Competition Act 2006 in relation to any water supply or sewerage service, and(b) a direction in relation to that service is given to the council under section 56 of that Act,the council and the owner are taken to have entered into a special circumstances contract in such terms as are prescribed by the regulations for the purposes of this subsection.
Division 3 Coastal protection service charges
553B Restriction on levying coastal protection service charges
(1) An annual charge for coastal protection services may not be levied on a parcel of rateable land in relation to existing coastal protection works unless the owner (or any previous owner) of that land has consented in writing to the land being subject to such charges.(2) Despite subsection (1), the council may make and levy an annual charge on a parcel of rateable land for coastal protection services that relate to existing coastal protection works if the owner or occupier (or any previous owner or occupier) of the parcel of rateable land contributed, after the commencement of this section, to the upgrade or expansion of the existing coastal protection works. However, any such annual charge must be calculated so as to enable the council only to recover that portion of the reasonable cost to the council of providing those services that exceeds the reasonable cost to the council of providing such services had the existing coastal protection works not been upgraded or expanded.(3) An annual charge for coastal protection services may not be levied on a parcel of rateable land in relation to any coastal protection works if:(a) the maintenance of the works or the management of the impacts of the works (as appropriate) is a condition of an approval or consent under the Environmental Planning and Assessment Act 1979 relating to the works, and(b) that maintenance or management work is not being carried out by or on behalf of the council.(4) In this section, existing coastal protection works means coastal protection works that existed before the commencement of this section.
All land in an area is rateable unless it is exempt from rating.
555 What land is exempt from all rates?
(1) The following land is exempt from all rates:(a) land owned by the Crown, not being land held under a lease for private purposes,(b) land within a national park, historic site, nature reserve, state game reserve or karst conservation reserve (within the meaning of the National Parks and Wildlife Act 1974), whether or not the land is affected by a lease, licence, occupancy or use,(b1) subject to subsection (3), land that is the subject of a conservation agreement (within the meaning of the National Parks and Wildlife Act 1974),(b2) land that is vested in, owned by, held on trust by or leased by the Nature Conservation Trust of New South Wales constituted by the Nature Conservation Trust Act 2001,(c) land that is within a special area or controlled area (within the meaning of the Water Board (Corporatisation) Act 1994) for Sydney Water Corporation referred to in that Act and is Crown land or land vested in the Corporation,(c1) land that is within a special area (within the meaning of the Hunter Water Board (Corporatisation) Act 1991) for the Hunter Water Corporation and is Crown land or land vested in that company,(c2) land that is vested in or owned by State Water Corporation and in, on or over which water supply works (within the meaning of the Water Management Act 2000) are installed,(d) land that is within a special area (as declared by an order under section 302 of the Water Management Act 2000) for a water supply authority and is Crown land or land vested in the authority,(e) land that belongs to a religious body and is occupied and used in connection with:(i) a church or other building used or occupied for public worship, or(ii) a building used or occupied solely as the residence of a minister of religion in connection with any such church or building, or(iii) a building used or occupied for the purpose of religious teaching or training, or(iv) a building used or occupied solely as the residence of the official head or the assistant official head (or both) of any religious body in the State or in any diocese within the State,(f) land that belongs to and is occupied and used in connection with a school (being a government school or non-government school within the meaning of the Education Reform Act 1990 or a school in respect of which a certificate of exemption under section 78 of that Act is in force), including:(i) a playground that belongs to and is used in connection with the school, and(ii) a building occupied as a residence by a teacher, employee or caretaker of the school that belongs to and is used in connection with the school,(g) land that is vested in the New South Wales Aboriginal Land Council or a Local Aboriginal Land Council and is declared under Division 5 of Part 2 of the Aboriginal Land Rights Act 1983 to be exempt from payment of rates,(g1) land that is vested in or owned by a public transport agency (within the meaning of section 3C of the Transport Administration Act 1988) and in, on or over which rail infrastructure facilities (within the meaning of that Act) are installed,(h) land that is below high water mark and is used for any aquaculture (within the meaning of the Fisheries Management Act 1994) relating to the cultivation of oysters.(2) Land is not rateable under subsection (1) (a) only because the land is leased by the Crown to a caretaker at a nominal rent.(3) If part of a single parcel of land is the subject of a conservation agreement within the meaning of the National Parks and Wildlife Act 1974 (as referred to in subsection (1) (b1)), any rate levied on that whole parcel (for any period on or after 1 July 2008) is to be reduced by the following percentage:
where:Aca is the area of that part of the parcel that is the subject of the conservation agreement, and
Awhole is the area of the whole parcel.
Note. For example, if a parcel of land would normally be subject to a rate of $1,000, but 40% of the area of the land is subject to a conservation agreement, that rate is to be reduced by 40% to $600.(4) Land that is a lot in a strata plan registered under the Strata Schemes (Leasehold Development) Act 1986 is taken, for the purposes of subsection (1) (e), (f), (g) and (g1), to belong to or be vested in the lessee (within the meaning of that Act) of the lot and not the lessor (within the meaning of that Act), unless the lessor is the lessee for the purposes of that Act.(5) A parcel of rateable land belonging to a religious body that is partly occupied and used in a manner described in subsection (1) (e), and partly in a manner that would result in part of the parcel not being exempt from rates under this section, is to be valued in accordance with section 28A of the Valuation of Land Act 1916 to enable those rates to be levied on the part that is not exempt.(6) Any such valuation is to be made at the request of the council that proposes to levy rates on the parcel concerned.(7) For the avoidance of doubt, sections 7B and 28A of the Valuation of Land Act 1916 extend to a stratum for the purpose of carrying out a valuation in accordance with subsection (5) and so extend whether or not the stratum is a lot in a strata plan that is registered under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986.
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556 What land is exempt from all rates, other than water supply special rates and sewerage special rates?
(1) The following land is exempt from all rates, other than water supply special rates and sewerage special rates:(a) land that is a public place,(b) land used for a public reserve and vested in the Crown, a public body or trustees,(c) land used for a common and vested in the Crown, a public body or trustees,(d) land used for a public cemetery and vested in the Crown, a public body or trustees,(e) land used solely for a free public library and vested in the Crown, a public body or trustees,(f) land acquired under an environmental planning instrument for the public purpose specified in the instrument and not leased for private purposes,(g) land that is held under a lease from the Crown for private purposes and is the subject of a mineral claim granted under Division 4 of Part 9 of the Mining Act 1992 and that the council has declared is not rateable,(h) land that belongs to a public benevolent institution or public charity and is used or occupied by the institution or charity for the purposes of the institution or charity,(i) land that belongs to a public hospital,(j) land that is vested in the Minister for Health, the Health Administration Corporation or the New South Wales Health Foundation,(k) land that is vested in a local health network constituted under the Health Services Act 1997,(l) land that is vested in a university, or a university college, and is used or occupied by the university or college solely for its purposes,(m) land that is vested in the Crown or the Sydney Cricket and Sports Ground Trust and is used or occupied for the purposes of or in accordance with the Sydney Cricket and Sports Ground Act 1978,(n) land that is vested in the Crown or the Zoological Parks Board and is used or occupied by the Board for its purposes,(o) land that:(i) is vested in the mines rescue company, within the meaning of the Coal Industry Act 2001, and(ii) is used for the purposes of a mine rescue station controlled by that company,(p) land that is managed by the Teacher Housing Authority and on which a house is erected,(q) land that is leased to the Crown for the purpose of cattle dipping,(r) land that is specified or described in the regulations as being exempt from all rates, other than water supply special rates and sewerage special rates,(s) land that is vested in an Aboriginal Land Council and that is reserved under Part 4A of the National Parks and Wildlife Act 1974.(2) Land that consists of a lot in a strata plan registered under the Strata Schemes (Leasehold Development) Act 1986 is taken, for the purposes of subsection (1) (h)–(o), to belong to or be vested in the lessee (within the meaning of that Act) of the lot and not the lessor (within the meaning of that Act), unless the lessor is the lessee for the purposes of that Act.(3) A parcel of rateable land belonging to a public benevolent institution or public charity that is partly used or occupied by the institution or charity for its own purposes, and partly for a purpose that would result in part of the parcel not being exempt from rates under this section, is to be valued in accordance with section 28A of the Valuation of Land Act 1916 to enable those rates to be levied on the part that is not exempt.(4) Any such valuation is to be made at the request of the council that proposes to levy rates on the parcel concerned.(5) For the avoidance of doubt, sections 7B and 28A of the Valuation of Land Act 1916 extend to a stratum for the purpose of carrying out a valuation in accordance with subsection (3) and so extend whether or not the stratum is a lot in a strata plan that is registered under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986.
557 What land is exempt from water supply special rates and sewerage special rates?
(1) In addition to the land specified in section 555, water supply special rates may not be levied on land to which the council has resolved not to supply water.(2) In addition to the land specified in section 555, sewerage special rates may not be levied on land which the council has resolved not to connect to the council’s sewers.
558 What land and bodies may be exempted from water supply special rates and sewerage special rates?
(1) A council may exempt the following from payment of water supply special rates and sewerage special rates:(a) a public reserve,(b) a public hospital,(c) a public charity,(d) land:(i) that is unoccupied, and(ii) that is not supplied with water from a council water pipe and is not connected to a council sewer, and(iii) that the council has determined is unsuitable for the erection of a building because it is liable to flooding or tidal inundation or liable to be affected by a coastal hazard,(e) land that, in the opinion of the council, it is impracticable, having regard to the physical features of the land or any unusual cost that may be incurred, to supply with water or connect to the sewer.(2) A council may exempt from payment of water supply special rates land that is within 225 metres of a gravitation or rising water main and that is not connected to the main.(3) A council may exempt from payment of sewerage special rates land that for the time being is not rateable in respect of the water supply special rate.(4) A public hospital that is exempt from payment of water supply special rates is to be supplied with water, and a public charity that is so exempt may be supplied with water, on the following conditions:(a) there is to be supplied free of charge:(i) in the case of a public hospital—300 litres per day (or such greater quantity as the council may determine) for each person resident in the hospital, and(ii) in the case of a public charity—140 litres per day (or such greater quantity as the council may determine) for each person resident in an institution conducted by the public charity,(b) for the purposes of this provision:(i) an inmate is taken to be resident, and(ii) the number of persons resident is the average number of persons resident during the year preceding the period in respect of which charges would be payable, and(iii) the general manager may, at any reasonable time, require the production of the records of the public hospital or public charity to verify the average number,(c) the supply is to be through a meter,(d) any quantity of water in excess of that which may be supplied free of charge is to be paid for at the charge fixed by the council for excess water.(5) The council may revoke or alter an exemption.
559 Determination as to whether a body is a public benevolent institution or public charity
The provisions of the Charitable Fundraising Act 1991 are irrelevant in determining whether a body is a public benevolent institution or public charity for the purposes of section 556 or 558.
Part 7 Payment of rates and charges
560 Who is liable to pay rates?
(1) The owner for the time being of land on which a rate is levied is liable to pay the rate to the council, except as provided by this section.(2) If land owned by the Crown is leased, the lessee is liable to pay the rate, except as provided by subsection (4).(3) If there are two or more owners, or two or more lessees from the Crown, of the land, they are jointly and severally liable to pay the rate.(4) The Crown is liable to pay the rate for land owned by the Crown which is subject to the Housing Act 1912 or the Aboriginal Housing Act 1998.
561 Who is liable to pay charges?
The person liable to pay a charge is:(a) the person who, if the charge were a rate and if the land on which the charge is levied were rateable in respect of that rate, would be liable under section 560 to pay the rate, or(b) the Crown in respect of land owned by the Crown, not being land held under a lease for private purposes.
562 Payment of rates and annual charges
(1) Annual rates and charges may be paid in a single instalment or by quarterly instalments.(2) If payment is made by quarterly instalments, each instalment is to be a quarter of the rates or charges, disregarding any remainder, together, in the case of the first instalment, with the remainder. However, if the amount of an instalment, other than the first instalment, is not a multiple of 10 cents, the amount of each instalment in excess of a multiple of 10 cents is to be subtracted from that instalment and added to the first instalment.(3) Except as provided by subsection (4):(a) if payment is made in a single instalment, the instalment is payable by 31 August, and(b) if payment is made by quarterly instalments, the instalments are payable by 31 August, 30 November, 28 February and 31 May.(4) If the rates and charges notice is not served by 1 August:(a) the single instalment (if payment is made in a single instalment), or(b) the first 2 instalments (if payment is made by quarterly instalments),is or are payable by 30 November, or by the day that is 30 days after service of the notice, whichever is the later.(5) On or before 31 October, 31 January and 30 April, a council must send reminder notices (to be sent separately from the rates and charges notice) to each person whose rates and charges are being paid by quarterly instalments.
563 Discount for prompt payment in full
A council may discount the amount of a rate or charge to such extent as it determines if the whole of the discounted amount of the rate or charge is paid by a date nominated by the council.
564 Agreement as to periodical payment of rates and charges
(1) A council may accept payment of rates and charges due and payable by a person in accordance with an agreement made with the person.(2) The council may write off or reduce interest accrued on rates or charges if the person complies with the agreement.
565 Capital contributions instead of payment of special rates or charges
A council may waive payment by a rateable person of the whole or part of a special rate or charge for one or more years as specified by the council if the person pays, or enters into a written agreement to pay, a lump sum towards the capital cost of any works, services or facilities for which the special rate or charge is made.
566 Accrual of interest on overdue rates and charges
(1) Interest accrues on rates and charges that remain unpaid after they become due and payable.(2) Interest accrues on a daily basis.(3) The rate of interest is that set by the council but must not exceed the rate specified for the time being by the Minister by notice published in the Gazette.(4) Accrued interest is, for the purpose of its recovery, taken to be a rate or charge which is due and payable.(5) Interest continues to accrue on unpaid rates or charges even though judgment for payment of the rates or charges may have been obtained in a court. Interest is not payable on the judgment debt, despite any other Act.
567 Writing off of accrued interest
The council may write off accrued interest on rates or charges payable by a person if, in its opinion:(a) the person was unable to pay the rates or charges when they became due and payable for reasons beyond the person’s control, or(b) the person is unable to pay the accrued interest for reasons beyond the person’s control, or(c) payment of the accrued interest would cause the person hardship.
Money paid to a council in respect of rates or charges levied on land is to be applied towards payment of those rates or charges in the order in which they became due.
(1) A council may serve on an occupier of land a notice of the amount of any rate or charge unpaid in respect of the land or of the amount of any judgment given against a person for any rate or charge unpaid in respect of the land, if the person liable to pay the rate or charge:(a) is resident outside New South Wales, or(b) is unknown to the council, or(c) has not been served in any legal proceedings for the recovery of the rate or charge after reasonable efforts have been made by or on behalf of the council to effect service, or(d) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit, or(e) dies, or(f) has had judgment given against him or her for the amount of the rate or charge.(2) The notice may demand that any rent in respect of the land is to be paid by the occupier to the council as it falls due in satisfaction of the rate, charge or judgment.(3) The council may recover the amount of the rate, charge or judgment outstanding as a debt from the occupier if rent is not paid to the council in accordance with the demand.(4) A payment under this section to the council discharges the payer from any liability to any person to pay the rent.
570 Transfer of land in payment of rates or charges
A council may accept a transfer of the land in respect of which rates or charges are or accrued interest is due and payable in full satisfaction of the rates, charges or accrued interest.
571 What happens if land is transferred?
(1) A person who disposes of an estate in land continues to be liable to pay a rate or charge levied in respect of the land if the rate or charge was levied:(a) before the estate was disposed of, or(b) after the estate was disposed of but before notice of the transfer was given as required by this Act.(2) A person who, as the holder of a licence, permit, permissive occupancy or authority under the Crown Lands Act 1989, was liable for rates or charges continues to be liable to pay a rate or charge levied in respect of the land subject to the licence, permit, permissive occupancy or authority if the rate or charge was levied before the licence, permit, permissive occupancy or authority was terminated or expired.(3) A person who becomes liable for rates and charges levied on land is liable to the council for a rate or charge owing in respect of the land even though the person was not so liable when the rate or charge was levied.
572 What happens if the rateability of land changes?
(1) A rate is proportionate to the portion of the year for which land is rateable and to the portion of the land which is rateable.(2) A charge, other than a charge limited under section 503 (2) to the cost of providing a particular service to land, is proportionate to the portion of the year for which land is rateable.
573 What happens if land is subdivided?
If land is subdivided, and a part is sold or let, any unpaid rates or charges may be apportioned by the council on the recommendation of the Valuer-General.
574 Appeal on question of whether land is rateable or subject to a charge
(1) A person who has an estate in land, or who is the holder of a licence or permit for land under the Crown Lands Act 1989, in respect of which a rates and charges notice is served may appeal to the Land and Environment Court:(a) in the case of a rate—against the levying of the rate on the ground that the land or part of it is not rateable or is not rateable to a particular ordinary rate or a particular special rate, or(b) in the case of a charge—against the levying of the charge on the ground that the land is not subject to any charge (excluding a charge limited under section 503 (2)) or is not subject to the particular charge.(2) An appeal may not be made under this section on the ground that land has been wrongly categorised under Part 3.(3) An appeal must be made within 30 days after service of the rates and charges notice.(4) If the Land and Environment Court determines that only a part of land is rateable, it is required to determine the value of that part.Note. While the grounds of appeal concerning rates are limited to those specified in section 574, opportunity is given at different points in the rate-making process for objections, submissions (including submissions by way of objection) and applications to be made to a council concerning rates. These include:• public notice of the draft operational plan• application for change of category for purposes of ordinary rate• deferral and reduction of rates.
Division 1 Concessions for pensioners
575 Reductions for eligible pensioners
(1) If an eligible pensioner is the person solely liable, or a person jointly liable with one or more other persons, for a rate or charge levied on land on which a dwelling is situated, the rate or charge is, on application to the council and on production to the council of evidence sufficient to enable it to calculate the amount of the reduction, to be reduced in accordance with this section.(2) Subject to subsection (3), the amount by which a rate or charge is required to be reduced is:(a) if the person making the application is, on the date on which the rate or charge is levied, an eligible pensioner who is solely liable or jointly liable with one or more jointly eligible occupiers but with no other person for the rate or charge—one-half of the rate or charge, or(b) if the person making the application is, on the date on which the rate or charge is levied, an eligible pensioner who is jointly liable with one other person who is not a jointly eligible occupier, or with two or more other persons, any of whom is not a jointly eligible occupier for the rate or charge—an amount that bears to one-half of the rate or charge the same proportion as the part of that rate or charge for which, as between all persons liable to pay the rate or charge, the applicant and any jointly eligible occupier are liable bears to the whole of that rate or charge.(3) The total amount by which:(a) all ordinary rates and charges for domestic waste management services levied on any land for the same year are reduced is not to exceed $250, and(b) all water supply special rates or charges so levied are reduced is not to exceed $87.50, and(c) all sewerage special rates or charges so levied are reduced is not to exceed $87.50.However, if subsection (2) (b) applies, the maximum amounts specified in this subsection are to be proportionately reduced in line with the proportion applicable under subsection (2) (b).
(4) If a person becomes an eligible pensioner after the day on which a rate or charge is made and levied, the person is entitled to a reduction under this section of the rate or charge proportionate to the number of full quarters remaining after the day on which the person becomes an eligible pensioner in the year for which the rate or charge is made.(5) A person who is an eligible pensioner or a jointly eligible occupier is, to the extent to which any rate or charge that, but for this section, would be payable by the person is reduced under this section, discharged from liability as between that person and any other person jointly liable to pay the rate or charge.
576 Application of this Division to postponed rates
If the payment of part of a rate which is required to be reduced by section 575 is postponed under Division 2, the amount of the rate for the purposes of this Division is taken to be the amount of that part of the rate that is not postponed under Division 2.
577 Extension of concession to avoid hardship
(1) If a council considers it proper to do so to avoid hardship, the council may, by order, direct that:(a) a person specified in the order:(i) who occupies a dwelling as his or her sole or principal place of living, which dwelling is the sole or principal place of living of an eligible pensioner, and(ii) who is jointly liable with that eligible pensioner or with that eligible pensioner and one or more other persons in respect of the land on which that dwelling is situated, and(iii) in respect of whom a reduction of rates or charges would not, if that person were solely liable in respect of that land, be required to be made under this Division, or(b) any person belonging to a class of persons specified in the order, being persons referred to in paragraph (a),is, on and from the effective date of the order, taken, for the purposes of this Division, to be or to have been an eligible pensioner.(2) If a council considers it proper to do so to avoid hardship, the council may, by order, direct that:(a) an eligible pensioner specified in the order who, although not liable, or although liable jointly with one or more other persons, to do so, has, for such period as, in the opinion of the council, warrants the making of an order under this section in respect of that person, paid the whole of the rates or charges for the land on which that dwelling is situated or is, in the opinion of the council, likely to pay the whole of the rates or charges in circumstances that in the opinion of the council warrant the making of an order under this subsection, or(b) any person belonging to a class of persons specified in the order being persons referred to in paragraph (a),is, on and from the effective date of the order, taken, for the purposes of this Division, to be or to have been the person solely liable in respect of the land on which the dwelling is situated.(3) An order under this section has effect according to its tenor.
578 When does an order under sec 577 take effect?
(1) An order under section 577 takes effect (or is taken to take effect) on such date as is specified in the order (the effective date), being a date in the year commencing on 1 July during which the order is made, whether or not that date is before or after the date on which the order is made.(2) If a council makes an order under section 577 that is taken to take effect on a date that is before the date of the making of the order, the council may, in that order or in a subsequent order, give such directions as to refunding any rates or charges that have been paid and the charging of interest on overdue rates or charges and as to such other matters as the council thinks fit.(3) An order under subsection (2) has effect according to its tenor.
579 When and how is an application made for the purposes of this Division?
(1) An application under this Division is to be made within the time and in the manner prescribed by the regulations.(2) If no such regulations are in force, the application is to be made within the time and in the manner fixed by resolution of the council and, if an application is made for an order referred to in section 577, as the council may require.(3) If, pursuant to an application made under this Division, a reduced rate or charge applies, the council may, if the eligibility of the applicant for a reduction in a subsequent rate or charge is verified by the council as prescribed by the regulations, reduce the subsequent rate or charge without requiring a further application under this Division.
580 Variation by regulation of amounts of reductions
The amount by which a rate or charge is to be reduced in accordance with this Division may be varied from time to time by the regulations.
581 Reimbursement of councils by Parliament
The Minister is required, out of money provided by Parliament, to pay to the council an amount equal to half that written off by the council under this Division because of section 575.
582 Abandonment of pensioners rates and charges
A council may waive or reduce rates, charges and interest due by any person prescribed by the regulations who is in receipt of a pension, benefit or allowance under the Social Security Act 1991 of the Commonwealth.
583 Writing off of pensioners rates and charges
(1) A council is to write off amounts of rates, charges and interest which are reduced or waived under this Division.(2) A council may not take proceedings to recover an amount so written off unless the amount has been written off because of a wilfully false statement in an application under this Division or except as provided by section 584.
(1) If circumstances occur that cause a person’s entitlement to a reduction, under this Division, of rates or charges to cease, the entitlement is taken to cease on the last day of the quarterly instalment period during which those circumstances occur.(2) If, at the time the entitlement is taken to cease, the rates or charges for the whole year, reduced under this Division, have been paid in full, the portion of the payment that is proportionate to the quarterly instalment periods remaining after that time is to be credited to the rates or charges payable in respect of that part of the year remaining after that time.
Note. This Division enables a ratepayer to apply for a postponement of part of rates on land which is used only as the site of a house or rural land but, because of its zoning or permitted use, is valued for rating purposes in a way that reflects its permitted use rather than its actual use.This Division also entitles the Maritime Services Board, the State Rail Authority Residual Holding Corporation and the State Transit Authority to a 25% rebate for ordinary rates payable for certain land.
Other rating concessions may be provided under other Acts. For example, section 127 of the Heritage Act 1977 provides for rates to be levied on heritage valuations determined in accordance with that Act instead of on other valuations.
585 Who may apply for postponement of rates?
The rateable person for land described in any of the following paragraphs may apply to the council for a postponement of rates payable for the land in the current or following rating year (or in both years):(a) a parcel of land on which there is a single dwelling-house used or occupied as such and which is zoned or otherwise designated for use under an environmental planning instrument for the purposes of industry, commerce or the erection of residential flat buildings, not being land referred to in paragraph (b) or (c),(b) a parcel of land (which may comprise one or more lots or portions in a current plan) on which there is a single dwelling-house used or occupied as such and which is zoned or otherwise designated under an environmental planning instrument so as to permit its subdivision for residential purposes, not being land referred to in paragraph (c),(c) a parcel of rural land (which may comprise one or more lots or portions in a current plan) which is zoned or otherwise designated under an environmental planning instrument so as to permit its use otherwise than as rural land, or its subdivision into two or more lots or portions, one or more of which has an area of less than 40 hectares.
586 Applications to be referred to Valuer-General
(1) The council must refer the application to the Valuer-General to determine the attributable part of the land value of the land if the council is satisfied that the land is described in section 585 (a), (b) or (c).(2) The Valuer-General must determine the attributable part of the land value and notify the council of the determination.
587 Attributable part of land value of land
(1) The attributable part of the land value of land described in section 585 (a) or (b) is determined by deducting from the land value the value that the land would have if the land could be used only as the site of a single dwelling-house.(2) The attributable part of the land value of land described in section 585 (c) that may be used otherwise than as rural land is determined by deducting from the land value the value that the land would have if the land could be used only as rural land.(3) The attributable part of the land value of land described in section 585 (c) that may be subdivided into one or more lots having an area of less than 40 hectares is determined by deducting from the land value the value that the land would have if the land could only be subdivided into lots having an area of 40 hectares or more.
588 Determination of attributable part of land value by Valuer-General
The Valuer-General must not, in determining the attributable part of the land value of land described in section 585 (a) or (b), take into account any portion of the land which the Valuer-General considers to be in excess of that which is reasonably necessary to be occupied or used in conjunction with the single dwelling-house.
589 Redetermination of attributable part of land value
(1) If a valuation for which the attributable part of the land value of land was determined is altered on objection or for the correction of a clerical error or misdescription, the council must require the Valuer-General to redetermine the attributable part of the land value of the land.(2) The Valuer-General must, on redetermination of the attributable part of the land value of land, notify the council of the redetermination.
590 Use of determination of attributable part of land value
The attributable part of the land value of land determined, or redetermined, by the Valuer-General may be used by a council for the purpose of postponing rates only while the circumstances that made the land eligible for a postponement of rates under this Division continue to exist and the valuation of the land value for which the determination was made remains in use for rating purposes.
(1) A council must, in accordance with this section, postpone the payment of rates for land in any rating year for which a determination or redetermination of the attributable part of the land value is in force.(2) For land for which no base amount of a rate is specified, the amount of the rate postponed is to be the same proportion of the rate as the attributable part of the land value bears to the land value.(3) For land for which a base amount of a rate is specified, the amount of the rate postponed is to be the same proportion of the ad valorem amount of the rate as the attributable part of the land value bears to the land value.
592 Interest on postponed rates
Interest accrues on parts of rates postponed under this Division as if the rates were overdue rates and, for this purpose, the due dates for payment are taken to be the respective dates on which the parts of the rates which were payable became due.
The council must refund to a rateable person any amount of rates paid by the person which exceeds the amount of the rates remaining after part of the rates is postponed.
On a redetermination of the attributable part of the land value of land, a council must adjust amounts payable for rates or to be postponed as appropriate. Any amounts paid in excess are to be refunded and amounts short-paid are recoverable as arrears of rates.
595 Rates to be written off after 5 years
(1) If 5 years have elapsed since the commencement of a rating year for which part of the rates levied on land have been postponed under this Division, the part postponed and any interest accrued on that part must be written off by the council.(2) Nothing in this section affects the right of the council to recover rates and interest, even though they have been written off under this section, if it subsequently appears to the council that they should not have been written off.
A rateable person for land for which an application has been made under this Division but not determined, or for which a determination or redetermination of the attributable part of the land value is in force, must inform the council (within 1 month) if land used or occupied solely as a site for a single dwelling-house, or as rural land, ceases to be so used or occupied.
597 Entitlement to postponement ceases
A person ceases to be entitled to a postponement of rates under this Division if the whole of a parcel of land used or occupied solely as a site for a single dwelling-house, or as rural land, ceases to be so used or occupied.
598 Redetermination on partial change of circumstances
(1) If part only of a parcel of land used or occupied solely as the site of a single dwelling-house or as rural land ceases to be so used or occupied, the council must require the Valuer-General to determine the amount of the attributable part of the land value of the land (if any) in relation to that part of the land and each other part of the land.(2) The council must, in accordance with the Valuer-General’s redetermination, make a due adjustment to the rates payable, or apply the provisions postponing rates, as it considers equitable in the circumstances.
599 When and how is an application made for the purposes of this Division?
(1) An application under this Division is to be made within the time and in the manner prescribed by the regulations.(2) If no such regulations are in force, the application is to be made within the time and in the manner fixed by resolution of the council.(3) If, pursuant to an application made under this Division, a reduced rate applies, the council may, if the eligibility of the rateable person for a reduction in a subsequent rate is verified by the council as prescribed by the regulations, reduce the subsequent rate without requiring a further application under this Division.
600 Rebates in respect of certain land vested in public bodies
(1) The rateable person in respect of a parcel of land vested in a public body is entitled to a rebate of 25 per cent of the ordinary rate made and leviable on the land or, if on objection by the council the Minister determines a lesser rebate, the lesser rebate.(2) The amount of the rebate is to be written off and abandoned by the council.(3) The rebate is to be allowed only if:(a) access to the parcel is wholly or substantially over other lands for which the public body provides at its own cost such services as materially benefit the parcel, and(b) the parcel is included in the then current list referred to in subsection (5), and(c) the council has not objected to the inclusion of the parcel in the list or its objection has been dismissed.(4) The rate notice must state the amount of the rebate, and, if an objection has been lodged under this section, must not be served unless and until the objection has been determined.(5) A public body in which is vested any parcel of land in respect of which the rateable person is entitled to a rebate under this section must furnish to the council not later than 30 April before the commencement of the year for which the rate is made a list setting out the parcels of land of the nature referred to in subsection (3) (a), giving particulars of each parcel, the means of access to them and the material services provided by the public body in respect of those parcels as at 31 March in the year in which the list is furnished.(6) If the council objects to the inclusion of any parcel in the list, it must serve notice of objection on the public body and on the Minister within 2 months after the list is furnished.(7) The Minister may allow or dismiss an objection, but, before determining an objection, the Minister must, if either the public body or the council so desires, afford them an opportunity of appearing before and being heard by a person appointed by the Minister for that purpose.(8) The decision of the Minister on an objection is final.(9) In this section:access and means of access include lifts, stairways, escalators and passageways in or on a building, structure, work or excavation.
public body means the Maritime Authority of NSW, a Port Corporation within the meaning of the Ports and Maritime Administration Act 1995, the State Rail Authority Residual Holding Corporation, Rail Corporation New South Wales, Transport Infrastructure Development Corporation, Rail Infrastructure Corporation, Sydney Metro, Sydney Ferries and the State Transit Authority.
services means cleaning, lighting, repairs and maintenance of any access and means of access.
601 Hardship resulting from certain valuation changes
(1) A ratepayer who, as a consequence of the making and levying of a rate on a valuation having a later base date than any valuation previously used by a council for the making and levying of a rate, suffers substantial hardship, may apply to the council for relief under this section.(2) The council has a discretion to waive, reduce or defer the payment of the whole or any part of the increase in the amount of the rate payable by the ratepayer in such circumstances, for such period and subject to such conditions as it thinks fit.(3) An applicant who is dissatisfied with a council’s decision under this section may request the council to review its decision and the council, at its discretion, may do so.
Part 9 Miscellaneous matters concerning rates and charges
602 Record of rates and charges
(1) A council is required to keep a record of:(a) each rate and charge made by it, and(b) in relation to each separate parcel of land within its area:• the land value of the parcel• whether the parcel is rateable, exempt from all rates or exempt from particular kinds of rates• the category declared under Part 3 for the parcel of land, and(c) the owner or lessee of each such parcel.(2) The council may amend the record as the occasion requires.
603 Certificate as to rates and charges
(1) A person may apply to the council for a certificate as to the amount (if any) due or payable to the council, by way of rates, charges or otherwise, in respect of a parcel of land.(2) The application must be in the approved form and be accompanied by the approved fee.(3) The council is to issue a certificate to the applicant stating:(a) the rates, charges or other amounts due or payable to the council in respect of the land and when they became due or payable, or that no such rates, charges or other amounts are due or payable, and(b) the balance of any special rate waived, under section 565, and the period for which it is waived, and(c) the work carried out on the land by the council and the cost that may be recovered from the owner or occupier for the work, or that no such work has been carried out, and(d) the name of the person shown in the council’s records at the date of the certificate as the owner of the land, if the person acquired the land under Division 5 of Part 2 of Chapter 17.(4) The production of the certificate is taken for all purposes to be conclusive proof in favour of a bona fide purchaser for value of the matters certified.(5) For the purposes of this section, rates, charges and other amounts are taken to be due or payable even though the requisite period after service of any notice may not have expired.
604 Notice of transfer of land
(1) Notice is required to be given to the council of the following events by the person specified in relation to the event:(a) the transfer of the estate of a rateable person in rateable land—by the transferee,(b) the entry into possession of rateable land under a mortgage—by the mortgagee,(c) the grant of probate or letters of administration in respect of the estate of a deceased person which includes an estate in rateable land—by the trustee, executor or administrator.(2) The notice must be given within 1 month after the event occurs.(3) It is not necessary to give notice of a mortgage or the discharge of a mortgage, except as provided by subsection (1) (b).(4) A person is taken to have satisfied the requirements of this section in relation to an event if notice of the event is lodged with the Registrar-General in accordance with the Conveyancing Act 1919 or the Real Property Act 1900 within 1 month after the event occurs.
605 Expenses of tracing persons
(1) A council may add to the amount of a rate or charge any reasonable out-of-pocket expenses incurred in tracing the person liable to pay the rate or charge.(2) Those expenses may be recovered as rates or charges, at the same time as any rates or charges and without the need to give any notice concerning them.
606 Notice of granting of certain Crown leases
(1) The statutory body or head of a Government Department who grants or takes the action necessary for the grant of a lease to any person for private purposes of Crown lands or land within a State forest must give particulars of the lease to the council of the area concerned within 60 days after the lease is granted.(2) The particulars do not have to be given if they are notified in the Gazette within the 60-day period.
606A Estimates of coastal protection service charges
(1) A council must, on request, provide a person who would be liable to pay an annual charge for coastal protection services in relation to proposed coastal protection works with an estimate of the person’s liability for that annual charge (if the council were to make such a charge) for each of the following 5 years.(2) A request for an estimate under subsection (1) must include any information required by the council in order to make the estimate, including but not limited to, information relating to proposed coastal protection works such as the location and type of works and their expected on-site and off-site impacts.(3) A request for an estimate under subsection (1) is to be accompanied by a fee determined by the council to cover the council’s reasonable costs in providing the estimate.(4) A council must provide the estimate within 30 days of the submission of the request (including the required information) and fee.(5) An estimate provided by the council does not bind or limit the council in the making or levying of a charge for coastal protection services under this Act.
606B Review of cost of coastal protection service charges on request of ratepayer
(1) A council must, on request, provide a person who is liable to pay an annual charge for coastal protection services with a report prepared by an independent person on the cost to the council of providing those services.(2) A request for a report under subsection (1) is to be accompanied by a fee determined by the council to cover the council’s reasonable costs in providing the report.(3) If a council provides a report to a person under subsection (1) the council is to make the report available to all other persons liable to pay an annual charge in relation to the same services.(4) A council is not required to provide a report under subsection (1) to a person if the council has in the previous 3 years provided or made available to the person such a report in relation to the same coastal protection services.(5) Despite subsection (2), a fee is not required to accompany the following requests:(a) a request made during the first year that an annual charge is made and levied on the relevant parcel of land,(b) a request made during the year following an increase in the annual charge by a percentage that is greater than the percentage specified in an order under section 506 for the year concerned.
606C Review of cost of coastal protection service charges on direction of Minister administering Coastal Protection Act 1979
(1) The Minister administering Part 4A of the Coastal Protection Act 1979 (the Coastal Protection Minister) may direct a council to provide the Coastal Protection Minister with a report prepared by an independent person on the cost to the council of providing coastal protection services.(2) A council directed to provide a report under subsection (1) must submit the report to the Coastal Protection Minister:(a) within 90 days of the direction, or(b) within such longer period as may be agreed to by the Coastal Protection Minister.(3) If a council fails to comply with this section, the Coastal Protection Minister may:(a) commission an independent person to prepare the report, and(b) recover the cost of preparing the report from the council.The council is to co-operate with the independent person in the preparation of the report.
(4) The council is to have regard to any report of an independent person referred to in this section in determining an annual charge for the coastal protection services concerned.
607 Writing off of rates, charges and accrued interest
The regulations may specify circumstances, in addition to those for which provision is made in this Chapter, in which a council may write off rates and charges and interest accrued on unpaid rates and charges.
Division 1 Council fees—general
In Division 2 of this Part, a reference to a fee is a reference to a fee to which Division 2 applies and, in Division 3 of this Part, a reference to a fee is a reference to a fee to which Division 3 applies.
(1) A council may charge and recover an approved fee for any service it provides, other than a service provided, or proposed to be provided, on an annual basis for which it is authorised or required to make an annual charge under section 496 or 501.(2) The services for which an approved fee may be charged include the following services provided under this Act or any other Act or the regulations by the council:• supplying a service, product or commodity• giving information• providing a service in connection with the exercise of the council’s regulatory functions—including receiving an application for approval, granting an approval, making an inspection and issuing a certificate• allowing admission to any building or enclosure.(3) In particular, a council may charge an approved fee for inspecting premises that are reasonably required to be inspected in the exercise of the council’s functions, whether or not the inspection is requested or agreed to by the owner or occupier of the premises.(4) However, a council may not charge an approved fee for the inspection of premises that are not used for a commercial activity, except where it is necessary to inspect the premises in connection with an application for an approval concerning the premises or in connection with any inspection that is reasonably necessary to determine if an approval has been complied with.(5) (Repealed)(6) If inspections of premises are reasonably necessary to determine if an approval has been complied with:(a) an approved fee may be charged for such an inspection only if the charging of the fee has been included as a condition of the approval, and(b) an approved fee may not be charged for such an inspection before the approval is granted, and(c) an approved fee may not be charged for the inspection of any thing for which the council relies on a certificate under section 93 that the thing has been done in compliance with the approval.(7) An approved fee charged for inspecting premises must be repaid to the person who paid it if the inspection is not carried out.(8) An approved fee charged in connection with a service provided at an airport established and maintained by the council may be recovered from the holder of the certificate of registration issued under the Civil Aviation Regulations of the Commonwealth for the aircraft in respect of which the service was provided. This subsection applies whether or not the holder is the person to whom the service is actually provided.
(1) If the amount of a fee for a service is determined under another Act:(a) a council may not determine an amount that is inconsistent with the amount determined under the other Act, and(b) a council may not charge a fee in addition to the amount determined under the other Act.(2) If the charging of a fee for a service is prohibited under another Act, a council must not charge a fee for the service under this Act.
Division 2 Council fees for business activities
(1) This Division applies to a fee charged by a council for any service relating to the following activities:(a) the operation of an abattoir,(b) the operation of a gas production or reticulation service,(c) the carrying out of a water supply or sewerage service (other than a service provided, or proposed to be provided, on an annual basis for which the council is authorised or required to make an annual charge under section 501),(d) the carrying out of work under section 67,(e) the carrying out of graffiti removal work under section 11 of the Graffiti Control Act 2008,(f) any other activity prescribed by the regulations for the purposes of this subsection.(2) This Division does not apply to a fee charged by a council for a service relating to the following activities:(a) the issuing of a certificate under Part 4A of the Environmental Planning and Assessment Act 1979,(b) an activity prescribed by the regulations for the purposes of this subsection.
610B Fees to be determined in accordance with pricing methodologies
(1) A council may determine a fee to which this Division applies only in accordance with a pricing methodology adopted by the council in its operational plan prepared under Part 2 of Chapter 13.(2) However, a council may at any time determine a fee otherwise than in accordance with a pricing methodology adopted by the council in its operational plan, but only if the determination is made by a resolution at an open meeting of the council.
Division 3 Council fees for non-business activities
This Division applies to a fee for a service other than a fee to which Division 2 applies.
610D How does a council determine the amount of a fee for a service?
(1) A council, if it determines the amount of a fee for a service, must take into consideration the following factors:(a) the cost to the council of providing the service,(b) the price suggested for that service by any relevant industry body or in any schedule of charges published, from time to time, by the Department,(c) the importance of the service to the community,(d) any factors specified in the regulations.(2) The cost to the council of providing a service in connection with the exercise of a regulatory function need not be the only basis for determining the approved fee for that service.(3) A higher fee or an additional fee may be charged for an expedited service provided, for example, in a case of urgency.
610E Council may waive or reduce fees
(1) A council may waive payment of, or reduce, a fee (whether expressed as an actual or a maximum amount) in a particular case if the council is satisfied that the case falls within a category of hardship or any other category in respect of which the council has determined payment should be so waived or reduced.(2) However, a council must not determine a category of cases under this section until it has given public notice of the proposed category in the same way as it is required to give public notice of the amount of a proposed fee under section 610F (2) or (3).
(1) A council must not determine the amount of a fee until it has given public notice of the fee in accordance with this section and has considered any submissions duly made to it during the period of public notice.(2) Public notice of the amount of a proposed fee must be given (in accordance with section 405) in the draft operational plan for the year in which the fee is to be made.(3) However, if, after the date on which the operational plan commences:(a) a new service is provided, or the nature or extent of an existing service is changed, or(b) the regulations in accordance with which the fee is determined are amended,the council must give public notice (in accordance with section 705) for at least 28 days of the fee proposed for the new or changed service or the fee determined in accordance with the amended regulations.(4) This section does not apply to a fee determined by a council for an application made in a filming proposal, if that fee is consistent with a scale or structure of fees set out in an applicable filming protocol.
Division 4 Certain annual charges
611 Annual charge on rails, pipes etc
(1) A council may make an annual charge on the person for the time being in possession, occupation or enjoyment of a rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place.(2) The annual charge may be made, levied and recovered in accordance with this Act as if it were a rate but is not to be regarded as a rate for the purposes of calculating a council’s general income under Part 2.(3) The annual charge is to be based on the nature and extent of the benefit enjoyed by the person concerned.(4) If a person is aggrieved by the amount of the annual charge, the person may appeal to the Land and Environment Court and that Court may determine the amount.(5) A person dissatisfied with the decision of the Court as being erroneous in law may appeal to the Supreme Court in the manner provided for appeals from the Land and Environment Court.(6) This section does not apply to:(a) the Crown, or(b) the Sydney Water Corporation, the Hunter Water Corporation, State Water Corporation or a water supply authority, or(c) Rail Infrastructure Corporation, or(d) the owner or operator of a light rail system (within the meaning of the Transport Administration Act 1988), but only if the matter relates to the development or operation of that system and is not excluded by the regulations from the exemption conferred by this paragraph.
613 Constitution of the Local Government Grants Commission
There is constituted by this Act a body corporate with the name of Local Government Grants Commission.
614 Membership of Grants Commission
(1) The Grants Commission is to consist of 4 commissioners appointed by the Governor.(2) Of the commissioners:(a) 3 are to be persons nominated by the Minister, and(b) the other is to be an officer of the Department.(3) At least 2 of the commissioners must be persons who are or have been associated with local government in New South Wales, either as members of a council or in some other way.(4) One of the persons referred to in subsection (2) (a) is to be appointed as the chairperson of the Grants Commission.(5) The commissioner referred to in subsection (2) (b) is to be the deputy chairperson of the Grants Commission.(6) Schedule 5 has effect with respect to the commissioners and the procedure of the Grants Commission.
615 What are the functions of the Grants Commission and the Minister under this Part?
(1) The Grants Commission is required to make recommendations to the Minister with respect to the allocation among councils of the total amount proposed to be paid to the State under the Local Government (Financial Assistance) Act 1995 of the Commonwealth in respect of each financial year.(2) The Grants Commission must make its recommendations in accordance with the requirements of the Commonwealth Act and any relevant principles of allocation approved under that Act.(3) The Minister may either adopt the recommendations made by the Grants Commission or request the Grants Commission to reconsider its recommendations.(4) The Grants Commission must, as soon as practicable after receiving a request from the Minister to reconsider its recommendation on a matter, make a further recommendation on the matter.(5) The Minister must, having regard to or having adopted the recommendations of the Grants Commission, allocate among councils the total amount proposed to be paid to the State under the Commonwealth Act in respect of the financial year concerned.(6) A council is entitled to receive from the Local Government Financial Assistance Fund, without delay, an unconditional payment of the amount allocated to it.
616 How does the Grants Commission decide on its recommendations?
(1) Before making a recommendation under section 615, the Grants Commission:(a) must hold such hearings and make such inspections, investigations and inquiries as it thinks necessary, and(b) may require a council to provide any information which may, in the opinion of the Grants Commission, assist it.(2) A requirement to provide information may specify the form in which, the period within which and the person to whom the information is to be provided.(3) A council, or an association of councils, may make submissions to the Grants Commission with respect to any matter likely to affect a recommendation under section 615 concerning the council or the association.
617 What information does the Minister have to provide?
The Minister is required, as soon as practicable after the end of each financial year, to provide to the Treasurer of the Commonwealth:(a) a statement, in accordance with a form approved by that Treasurer, specifying the payments to councils made under this Part during that financial year in accordance with the Commonwealth Act and the dates of those payments, and(b) a certificate by the Auditor-General that, in the Auditor-General’s opinion, the contents of the statement are correct.
618 What other functions does the Grants Commission have?
(1) The Minister may, from time to time, request the Grants Commission to report on any matter that the Minister specifies.(2) The Grants Commission must comply with such a request as soon as practicable after it is made.(3) The Grants Commission may require a council to provide any information which may, in the opinion of the Commission, assist it in complying with such a request.(4) A requirement to provide information may specify the form in which, the period within which and the person to whom the information is to be provided.(5) A council must comply with such a requirement to the extent that it is able to do so.
619 What happens to the money paid to the State under the Commonwealth Act?
(1) There is to be deposited into the Local Government Financial Assistance Fund established in the Special Deposits Account in the Treasury all money paid to the State under the Commonwealth Act.(2) There is to be paid from that Fund the amounts that the Minister decides to allocate to councils under this Division.
620 Making of grants by the Minister
The Minister may, out of money appropriated by Parliament for the purpose, make grants to councils and other bodies constituted under this Act.
621 When and for what may a council borrow?
A council may borrow at any time for any purpose allowed under this Act.
622 What form may a council borrowing take?
A council may borrow by way of overdraft or loan or by any other means approved by the Minister.
(1) A council may give security for any borrowing in such manner as may be prescribed by the regulations.(2) All such securities rank on an equal footing, despite any other Act.
624 Are there any restrictions on a council borrowing?
The Minister may, from time to time, impose limitations or restrictions on borrowings by a particular council or councils generally despite the other provisions of this Part.
(1) A council may invest money that is not, for the time being, required by the council for any other purpose.(2) Money may be invested only in a form of investment notified by order of the Minister published in the Gazette.Editorial note. See Gazettes No 152 of 24.11.2000, p 12041; No 94 of 29.7.2005, p 3977; No 97 of 15.8.2008, p 7638 and No 160 of 24.12.2008, p 13140.(3) An order of the Minister notifying a form of investment for the purposes of this section must not be made without the approval of the Treasurer.(4) The acquisition, in accordance with section 358, of a controlling interest in a corporation or an entity within the meaning of that section is not an investment for the purposes of this section.