[Maria Devoti]

Hi All,
We have our very first boarding house. This is owned by Mission Australia and expect they will apply for rate exemption.
1. However, how is the rating set up on Boarding houses?
2. Do we need contact the owner on a yearly basis to find out if full board & lodging or part board & lodging?
3. What happens if the accommodation is vacant?
4. Would you charge yearly / quarterly?
5. What happens if there is a change to occupancy?
Any help would be appreciated.
Thanks Maria

[Darryl Telfer]

Hi Maria,
You may wish to consider saving yourself some effort and ask them if they are seeking an exemption, otherwise
per s516 the dominant use still applies.
If yes, than you should ask the owner to provide details of tariffs charged to determine if they fall within the gazetted tariffs under S516 (1A) (a) i.e. amount and whether they are full or part lodging – and also if they meet the 3 tariff paying occupants residing continuously for 3 consecutive months requirement under S516 (1A) (b) – that could be difficult to determine if the facility has just opened so perhaps review in 3 months/before 30/6?
Its really your/Council/management decision as to how often you would review/reconfirm. If its a reputable operator I think yearly is a bit unnecessary.
Vacant accommodation i.e. less than 3 occupants/3 months is covered in S516(1A) also i.e continues to be regarded as a boarding house if it subsequently becomes vacant.
My first step (not necessarily anyone else’s) would be to check if they intend to apply for exemption – and save potentially all the above nonsense (sorry, process).

[Suzi Flynn]

Hi Maria,
The construction of section 516 is wonderful, isn’t it?!
This one is probably up for debate and you might need your own legal advice.

I believe all you need to do is satisfy yourself that the land’s dominant use is for residential accommodation.

Only a hotel, motel, guest-house, backpacker hostel or nursing home have been excluded from the residential rating category within section 516 directly. Section 516(2) allows for the Regulations to prescribe other forms of development that can also be excluded from (and included in) the residential category. Section 516(1)(a) also prevents boarding houses that meet the definition in s516(1A) from being excluded through the Regulations.

Regulation 121 excludes land used for a caravan park or a manufactured home estate from the residential rating category.

To my knowledge, no form or description of a boarding house has been excluded from the residential rating category within the Regulations. Therefore, I do not think a boarding house needs to meet the definition within s516(1A) to be categorised as residential.

All the best,
Suzi

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