[Andrew Butcher]

Hi Anthony

I understand your interpretation, however the issue is not the use its the application that is the problem. In particular is compliance that has been driven by Sarbanes-Oxley Act 2002 from the United States that has affected compliance positioning around the world.

Principally, the current legislation is not as clear as it should be and is open to intrepetation. Accordingly the OLG has reformed this under the Local Government Amendment Act to firm up the application process for transfers in ownership and the discontinuance of postponed rates following a transfer or sale as was their initial intention. Unfortunately, the Rating and Revenue Raising Manual has not been updated to make this clearer.

Section 597 leads with ‘a person ceases to be entitled to a postponement of rates under this division….’, the person entitled to postponed is the person that made the initial application, that person would be liable for the accrued postponed to the date of transfer or sale and new owner would need to apply from the next rating year per Section 585 Who may apply, refers to ‘the rateable person for land….’.

Who knew there would be such passionate debate about postponed rates? For the purposes of continuity councils that have a policy around this would in my view be best advised to continue, however as I said earlier the amended legislation has been passed just not commenced and it gives a clearer policy position from the government, just my view.

Regards,
Andrew