[Meredith Thompson]

Hi,

Council has received an email from Property NSW with regards to rateability of Police Housing requesting an Ordinary Rate Exemption. They say:

“Under the provisions of Part 2 of the Property NSW Act 2006, Property NSW was established as a statutory body representing the Crown with the status, privileges and immunities of the Crown.

….Under the provisions of Part 6 (Sections 555(1)(a) and 556 (1)) and Part 7 (Section 560) of the Local Government Act 1993 (NSW), Property NSW as a statutory Crown Agency, is exempt from the payment of general rates levied against the properties and accordingly seeks adjustments to be made…..”

Can you please advise on this? There is no mention of Police Housing in the Act and i was of the belief that if they took payment for rent they were to be rated. Bourke Shire Council would have about 50 x Police Houses and this would be a significant loss to us.

[Robert Hay]

Hi Meredith

The 1st part is correct, they are exempt.

The 2nd part, I have heard of this before and there was no lease. Do you have copies of the leases?

Robert

[Andrew Butcher]

Hi Meredith,

I will be in touch off-line to obtain more information and discuss taking this matter up with the OLG.

I would also recommend that your council considers seeking an answer on this issue directly with the Minister for Local Government.

Regards,
Andrew

[Robert Hay]

Hi Meridith

Also you wouldn’t lose the income as those properties are to be included as rateable in your previous year NGI in your statement of compliance and then that would be spread across the rest of your ratepayers in your current year yield as you would then not include those properties as they are non rateable.

Robert

[Julia Freer]

Hi Meredith

Narrandera Shire has also just received the same request from PropertyNSW. I have made contact with our neighbouring LGAs who have not heard from Property NSW (yet). Agreed that Sect 555(1)(a) does refer to lease but by definition of a lease in the LGA 1993 definition section – “A 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 a relation of landlord and tenant, whether there is or is not any instrument in writing”. A lease – (b) refers to Crown land includes licence, permit, permissive occupancy or authority…. is taken for the purpose of this Act to be held under lease by the person in lawful occupation…….”

I have also made contact with Elizabeth Hayes (Legal Officer) at LGNSW and have asked if in the absence of a written lease, if money is received by Property NSW, or is part of the remuneration package of the occupant, or that there is the lawful occupation of the property without the exchange of money, that a relationship has been established between PropertyNSW and the occupant and that this constitute a “lease”. Elizabath has advised that she will look into this issue next week but you might like to also contact her to advise that you have received the same message from PropertyNSW so she can see that other Councils have been approached/affected.

[Andrew Butcher]

Just a quick update, I have been in contact with the OLG who are concerned about the implications and willing to support the sector, particularly based on the significance this has/can have on regional councils.

Could all affected councils please post or advise me directly the number of properties (past and presently) affected and the dollar amounts.

Thank you to for posting the LGNSW involvement Julia, I will reach out to Shaun McBride and brief him too.

Also, is Property NSW seeking exemptions from water and sewer or just land rates?

Regards,
Andrew

[Andrew Butcher]

A written request has been sent to the OLG today seeking support with this issue.

Regards,
Andrew

[Nicholas Lew]

Hi, Council has just received an application for Non Rateability on 4 properties. Total Rateable Amount $2002.77.

[Andrew Butcher]

Thanks Nick

Since raising this issue with the OLG I have not heard anything further but will continue to follow up.

Please keep these coming in if you receive them.

Regards,
Andrew

[Rebecca Coppolino]

Good morning

Goulburn Mulwaree Council have also received a request for 11 properties to be made Non-Rateable. The initial conversation with NSW Property was that Council believed all properties were held under a lease and that the residences were used for private purpose. We advised that under the current legislation GMC felt that they were right in rating each of these properties and would not change them to Non-Rateable.

NSW Property were insistent that all residence were occupied by NSW Police officers and that under the terms of ownership these dwelling could only ever be occupied by NSW Police Officers. At this time they advised that they would get their legal department to review Legislation, leases etc and reply accordingly. A response was received outlining case law and referring to their original request – it didn’t appear to be sent directly from the Legal department.

During my conversations with NSW Property they confirmed that a lease was held for each residence.

As mentioned above, if Councils are required to change these properties to Non-Rateable the impacts, particularly to Regional Councils will be significant. We understand that the income can still be recovered by the remainder of rateable properties – but it is these rateable properties that keep taking the hit every time a NSW Government body, Religious or Benevolent organisation make this request to Councils.

Hopefully OLG are able to provide Council’s with the support and information required to leave these properties as Rateable.

Rebecca & Julie

[Nicholas Lew]

Hi

Started looking at how to reply to application for Non Rateability. Reading “Property NSW Tenant Handbook” does mention Residential Tenancy Agreement or Lease Agreement, Paying rent and Bond for “official Residences” subject to 3% deduction in lieu of quarters and rental determination based on market value.
http://www.dpie.nsw.gov.au/__data/assets/pdf_file/0009/516834/nswpf-tenant-handbook.pdf

[Rebecca Coppolino]

I have been asked to include the $$ adjustment; if Council was to make the change from Residential to Non-Rateable it would be a reduction of $16,617.03

[Andrew Butcher]

Hi everyone

The OLG have been extremely supportive in acknowledging this issue, the following is the OLG’s response. I know this may not appear to be very helpful, but I think it is great that the conversation has started and would encourage everyone to keep providing their evidence.

Thank you for your email of 31 July 2024 raising concerns on behalf of a number of regional councils about Property NSW seeking rating exemptions for NSW Police Force housing.

I note that NSW Property is seeking exemptions from council rates under the Local Government Act 1993 (the Act), and I recognise the implications this has on councils and the distribution of the rating burden across a council area.

As you are aware, the Legislative Council is undertaking an inquiry into the ability of local governments to fund infrastructure and services (the Inquiry). The inquiry is examining the level of income councils require to adequately meet the needs of their communities and is considering the current levels of service delivery and financial sustainability in local government. The Inquiry is an important opportunity for experiences, views and recommendations to be heard about how we address long term council financial sustainability. A significant number of councils have made submissions and appeared at hearings, and I would like to thank the Revenue Professionals for taking an active part in the Inquiry.

The matter of rate exemptions was discussed at the Inquiry, and I can advise that the Minister for Local Government is open to looking at the concept of rating exemptions and will be guided by what the Inquiry recommends.

In the interim, if the relevant councils are of a view that the rating exemptions being sought by Property NSW are not in accordance with the exemption framework available under the Act, they are encouraged to deal directly with Property NSW on a case-by-case basis.

I would like to take this opportunity to thank you and the Revenue Professionals for its ongoing commitment to collaborate with and provide advice to the Office of Local Government (OLG) about local government rating and revenue.

Regards,
Andrew

[Rebecca Coppolino]

Thank you Andrew.

[Meredith Thompson]

Hi Andrew,

sorry – been flat out…..we have 36* Properties and General Rate totals $20,684.15. They are only requesting the general rate be written off….

regards,

Meredith

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