[Jason Symons]

Hi all, sorry this is a bit long-winded.

This is for anyone that has NSW Transport/Rail Corporation/Transport Railcorp land that is leased.
I’ve recently received a letter from Transport Railcorp regarding land leased to Bishop Austrans Limited effective April 2000.

Railcorp is claiming that the land is used for “Research and development for the creation, development and commercialisation of rail related technology”, and as a result under Section 555 of the LGA, the land is Non-Rateable from the date the lease commenced.

Sec555(g)(1) states “land that is vested in or owned by a public transport agency (within the meaning of section 3C of the Transport Administration Act 1988 ) and in, on or over which rail infrastructure facilities (within the meaning of that Act) are installed” is exempt from rates (there is no mention of whether there is a lease over the land).

I’m not prepared to grant non-rateability because under the Transport Admin Act, the definition of Rail Infrastructure Facilities:

(a) includes railway track, associated track structures, over track structures, cuttings, drainage works, track support earthworks and fences, tunnels, bridges, level crossings, service roads, signalling systems, train control systems, communication systems, overhead power supply systems, power and communication cables, and associated works, buildings, plant, machinery and equipment, but

(b) does not include any stations, platforms, rolling stock, rolling stock maintenance facilities, office buildings or housing, freight centres or depots, private sidings or spur lines connected to premises not vested in or owned by or managed or controlled by a rail infrastructure owner.

There isn’t a mention of land that is used for research and development.

Does anyone else have similar leases/situations, and if so do you rate the land?

Thanks
Jason

[Steve Ansoul]

Hi Jason,

In Byron Bay, a private organisation has leased a section of railway land from the middle of town to the entrance of a resort for the purposes of a light rail service (a few km’s and yes the rail company set up is part of the company that owns the resort). Obviously a business venture but gets tricky as Council is also involved due to the “community benefits” and precinct improvements also realised. Most of the land has “rail infrastructure” on it (i.e. disused rail lines) even though they are building platforms (which I believe are not defined as rail infrastructure). It is owned by Transport for NSW. As you point out, the exemption under section 555g is based on ownership and a lease is irrelevant (even though the Valuer General will provide a valuation due to the lease). As a result, we have determined the land to be exempt as it’s dominant rail infrastructure and owned by TfNSW.

Cheers
Steve A.

[Steve Ansoul]

Sorry Jason – should have mentioned that our situation is outside your issue of “research and development”…

[Jason Symons]

Thanks Steve. Shot them off a letter basically saying they will be rated, and it’s up to them to prove the research and development part of the lease doesn’t prevent them from being exempt.

Cheers

Jason

[Author]

Posts