[Emma Murphy]

Council has been rating a Sport and Rec Club, Business since 2014 (noting we inherited this property as part of a boundary adjustment in 2019). The property has a building which has a bar, restaurant and poker machines. A bowling green and also attached is a football oval (Council is looking to take the oval over). I think the sport and rec club operates a couple of nights a week, as the property is in a small village.

A request has come through for it to be non-ratable under section 555 (1)(a), and the rates refunded.

The situation for the parcel of land is:

Crown Land
Managed by a board
The XXX Sport and Rec Club have a short term licence with the board to occupy the building and I presume the fields and greens.

Crown land have advised me that regardless of the use, 555(1)(a) is applicable and the property should be non rateable. As there is a licence but not a lease.

Anyone been faced with anything like this?

[Ian Clayton]

Hi Emma,

The definition of lease in the dictionary to the Act includes a licence, so exemption under 555(1)(a) may not be appropriate.

“lease” —
(a) includes an original lease, derivative lease or an under-lease or an agreement for any of them, and extends to any case where there is the relation of landlord and tenant, whether there is or is not any instrument in writing, and
(b) in relation to Crown land, land owned by or vested in the Crown or land within a State forest–includes a licence, permit, permissive occupancy or authority (other than a licence under the Forestry Act 2012 or a forest permit under that Act that authorises grazing for a period of less than 12 months, bee-farming or any other activity that does not involve the occupation of a State forest), and land occupied under a mineral claim under the Mining Act 1992 is taken for the purposes of this Act to be held under a lease by the person in lawful occupation, under the mineral claim, of the land.

Our Council often considers making a donation to community groups of an amount equivalent to rates they have to pay, if the support is needed.

regards,
Ian

[Author]

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