[Maria Devoti]

Hi All,

I understand that the rates that have been published are based on the Non-Vacant categories. Treasury have not published the Vacant rates (which is half the Non-Vacant rates). Is there a possibility that the vacant rates can be challenged in court as they have not been published?

This is just a thought.

Maria

[Tracey Walker]

Hi Maria,
My understanding is that as under s23 of the legislation vacant land will receive a 50% discount, and further in s28 (ad valorem rate formula) shows how it should be calculated. Therefore I could not see how it would be challenged in court.

[Robert Hay]

Hi Maria

I think Section 23 (2) and (3) of the FESL Act covers it:
(2) The levy payable for a financial year is to be reduced by the vacant land discount (expressed as a percentage) for the financial year for which the levy is charged.
(3) The “vacant land discount” is 0.5 or, if another rate is prescribed by the regulations, that rate.

Robert

[Maria Devoti]

Thanks Tracey and Robert for your responses

[Megan Bugge]

Hi Tracey, Robert & Maria
Can I just confirm – the discount for vacant land is 50% of ad-valorem and 50% of base rate so Industrial vacant is $100 + LV x 0.00134.

With thanks
Megan

[Robert Hay]

Hi Megan

I believe the calculation for Ind Vacant would be $100 + LV x 0.0013435.

E.g $100 + 100,000 x 0.0013435 = $234.35 which matches the FESL calculator.

I would not be rounding the rate in the $ at all as this will lead to an incorrect calculation.

Robert

[Tracey Walker]

Megan,
Just be aware that the base amount for industrial is $200 not $100. But yes Robert is correct if you round the rate in the $ it will calculate the incorrect amount.
Tracey

[Megan Bugge]

Thanks Tracey, but the vacant base would be $100 as it is 50% ?? Just checking this Robert ??
thanks
Megan

[Tracey Walker]

Sorry Megan, I misread the classification as non-vacant, you are correct its $100.

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