[Cherie Muir]

Hi there

I know that many councils extend their rebate under s.575 to life tenants using s.577. Section 577 requires that a council make an ‘order’. I believe many Pensioner Concession policies across our industry mention s.577 and talk of how it is applied (to extend the rebate to life tenants for example) but I’m keen to know if your council goes down the path of making the order as per s.577, 578 and 579.
i.e. how does a council ‘make’ this order? By once off resolution? By annual resolution? Or simply at the same time as adopting their Pensioner Concession Policy?

I’ve always wondered about the logistics of s.577 … keen to hear of your thoughts and experiences. Thank you.

p.s. It was lovely to see so many of you at another top-notch NSWRP conference this month. A fabulous few days! Many thanks to all involved in such a quality and informative expo.

[Darryl Telfer]

Hi Cherie,

Can’t help you with S577, something I have dodged on the grounds that there is no government subsidy.

If you are looking at same for Life Tenants only then you might not need an order under S577. Page 90 of the OLG Rating and Revenue Raising manual states that life tenants are eligible under S575.
There will be different interpretations of the legislation however, this is my take on it:
S575 (1) If an eligible pensioner is the person solely liable, or a person jointly liable with one or more other persons,
So, to be eligible under S575 the pensioner must be liable.
So, who is liable?
S 560 (1) The owner for the time being of land on which a rate is levied is liable to pay the rate to the council…...
So who is the owner? If their name is on the title then under Torrens Title, they are an owner. But can they be an owner if they are not on the title?
The LGA Dictionary defines owner of land (other than Crown Land) as every person who jointly or severally, whether at law or in equity, is entitled to the land for any estate of freehold in possession

I believe (not sure how I formed the view, may be a legal opinion I read, maybe I have just convinced myself? that a life tenant is entitled in equity to an estate etc… and as such is an owner, is therefore liable, can therefore be eligible (if they satisfy the other eligibility criteria i.e. PCC, primary pace of residence etc.

I know others will disagree. Some will have the view that life tenants are not liable to pay council and support that view by posing the question Would you sue the life tenant if the rates are not paid?.
That’s OK, after all the forum is about sharing views and learning.

I also enjoyed the conference immensely and send my sincere thanks to all involved.

• This reply was modified 4 years ago by Darryl Telfer.
• This reply was modified 4 years ago by Darryl Telfer.

[Cherie Muir]

Hi there Daryl
Many thanks for sharing your thinking. I get your thinking, and yes – life tenancy fits in S.575 well.
I too have been weary of S.577 over the years (though my caution was associated with the necessity of the ‘order’ … I had never got so far as to realise the subsidy implication). I think there may be some confusion out there around S.577.
The OLG Debt Guidelines from 2018 promote it as a hardship option and maybe this is when it showed up in many councils’ policies.
Thanks again
Regards,
Cherie.

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