University leasing from Council

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  • #21662
    Lee Howard
    Blocked

      Great Lakes

      Hi all just wanting some opinions Council is leasing one of our buildings (operational land) to a registered charity on a long term lease,it will be used for educational purposes. The lease will include rates however they want to claim non rateability. What are your thoughts on this?

      #21663
      Robert Hay
      Participant

        The Hills

        Hi Lee

        I’m guessing they are probably asking you to consider it under the below section.

        Section 556 (l) land that is vested in a university, or a university college, and is used or occupied by the university or college solely for its purposes.

        I don’t believe a lease agreement means that the land has been vested.

        Robert

        #21664
        Robert Hay
        Participant

          The Hills

          Hi Lee

          Sorry

          I had Universities on the brain. Council as the owner is responsible for payment of rates and charges.

          They cant claim non rateability they aren’t the owner.

          Robert

          #21665
          Darryl Telfer
          Participant

            Central Darling Shire

            Hi Lee,

            Your Topic heading mentions university whilst your post talks of a public charity, proposing to use the land for educational purposes.

            Robert is (IMO) correct re university exemption not applicable under 556 (1) (h) as the land is not “vested” (again IMO).

            Looking at possible exemptions under 556 (1) (h) “land that belongs to a public benevolent institution or public charity and is used or occupied by the institution or charity for the purposes of the institution or charity”;
            Presumably the purposes of the leasee/public charity includes “education” – regardless though any exemption here is thwarted by the “belongs to” part as nowhere in the Act can I see that a lease (other than of Crown Land maybe) constitutes “belongs to” (there may be case law somewhere that overrides this view).

            I can’t think of any other provisions under which that an exemption could be provided – once it is leased or sold, it ceases to be exempt per the LGA Dictionary definitions of Public Place and Public Land.

            FWIW I think it matters not that the leasee has made the request. The Act simply sets out what is/isn’t exempt and I believe its up to Council to apply the provisions based on the information provided to it, regardless of its source.
            Its a mute point anyway – so please forgive my ramblings.

            Best regards

            Darryl

            #21667
            Suzi Flynn
            Participant

              Sydney City

              Hi Lee,

              I agree that any land owned by Council that is leased is not exempt. There is no need to determine the purpose of the lease as this land owned by the Council would generally only be exempt (if it wasn’t leased) under section 556(1)(a). From what you described, sections 555(1)(a) and 556(1)(h) do not apply.

              Suzi

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