[Andrew Butcher]

Hi Dallas

I know, when I was first contacted about this it was in May and the question was could councils do this work within three months. The commencement date was suggested as early September kick off which I thought would be suitable provided Treasury contacted the RP as soon as possible.

We have assembled a small team (due to a restriction on numbers) that covers both regional and metro councils and the three major software vendors (Pathway, Tech-1 and Authority) to provide advice on the supporting manual and software solutions.

The first meeting was convened on 29 August 2024 by Treasury and Revenue NSW, and we have met with them each week since. As delays were occurring, we looked to an extension and were advised that the due date (2 December 2024) has been set in the guidelines and signed off by the Minister and could not be altered.

We will continue to try to make this easy as possible, given the time constraints and I wholly support your concerns due to the limited time.

Hope you are well and keeping safe.

Regards,
Andrew

[Andrew Butcher]

Ok, so I might have jumped the gun a little bit.

If you registered for the original Webinar scheduled for 18 September 2024 should have access to the website.

If you did not register for the original Webinar scheduled for 18 September 2024 your council will soon receive a registration request, which will allow you access.

Please accept my apologies for any inconvenience, the Webinar and the guidelines are the only two items available:

Webinar

Preliminary-Land-Classification-Guidelines-2024

Regards,
Andrew

[Andrew Butcher]

Hi Rebecca

The struggles you are having are not uncommon in our sector and we (NSWRP) are in regular contact with the LRS and other key stakeholders. The last meeting I attended the advice received was that there was not enough money in their budget to include additional contact points and a work around was suggested, I have not heard anymore since.

The LRS is planning to upgrade their platform to enable different reporting methods/processes. I will follow up with LRS and post an update.

In the interim I recommend contacting the conveyancer if you know the address is incorrect and note any unsuccessful contact attempts, agreed it is not ideal. Seeking additional contact points has worked extremely well for us in both being able to avoid debt management and defending any action should the need arise.

Hope this is helpful.

Regards,
Andrew

[Andrew Butcher]

Hi Dave

I have been in contact with the OLG and received some advice, however the openness of the legislation and Regulations is to give councils flexibility in formulating an opinion on what ‘good stormwater management practices’ are.

The following is an extract from the guidelines, it gives some concept – ‘particularly relating to installation of rainwater tanks, prior to introduction..’ but not much more.

5.6 Discounts and rebates
The offering of discounts or rebates to owners of properties subject to the charge is at the discretion of each council. Discounts or rebates could be applied in circumstances including where:
• residents can demonstrate good stormwater management practice, particularly relating to installation of rainwater tanks, prior to introduction of the charge;
• pensioners are liable for the charge; or
• councils wish to encourage businesses to adopt improved stormwater management practices.
However, the mandatory concession that applies to ordinary rates, domestic waste management, water and sewerage charges does not apply to the stormwater management service charge.

I agree with Cherie, this one should be determined by the team responsible for the stormwater management function, with their expertise on what ‘good stormwater management practices’ are.

Hope this is helpful.

Regards,
Andrew

[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

[Andrew Butcher]

The Permissible income Workpapers have been fixed and can be found on the OLG’s website, a copy is attached.

Regards,
Andrew

Permissible-Income-Workpaper-2024-25 – OLG

[Andrew Butcher]

Hi Dallas

I am following the VG up with this issue today, our next Executive meeting is Monday 19 August.

From what I can tell the issue is around the VG’s discretion to decide if it is reasonable to value the land as heritage restricted under section 14G based on conditions within a councils LEP and we need to know how this will impact councils.

Have you received any valuation changes based on the heritage items listed under the LEP? If so, could you share directly with me as a practical example, or just the PID.

Regards,
Andrew

[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

[Andrew Butcher]

Hi Dallas

Tracey has brought this to the attention of the NSWRP Executive Committee, we will be raising it with the Valuer-General.

If you need anything or have more supportive information, please do not hesitate to provide to Tracey Walker or myself, or post in this forum.

All the best.

Regards,
Andrew

[Andrew Butcher]

Hi Dallas

I agree with the above, effectively what the VG has done is said that they don’t see any additional value in the lands permitted use over its actual use. This does not affect the previous years postponed as there was additional value and they should be allowed to be written off as they age or be brought to account if the property is sold or there is a change (per the Act).

When this occurs with us, we enter a nil attributable part for record keeping purposes, and in effect that is what the VG has advised, but it is not necessary to do so.

The notice I guess is up to you how it looks and what it contains but a notice must be served to meet the requirements of the Act for liability. We use Pathway and it generates a separate notice page, it does separate arrears from current rates and interest charges.

Hope this is helpful.

Regards,
Andrew

[Andrew Butcher]

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

Regards,
Andrew

[Andrew Butcher]

I have a meeting scheduled with the OLG this week (Friday) with a view to fix the issues.

Thank you to those councils that have been in contact and supplied information to help identify where fixes need to be applied.

Also, thank you for your patience I know this is important and have been in regular contact with the OLG.

Regards,
Andrew

[Andrew Butcher]

Hi Andrea

Based on the information provided I would press them on meeting the criteria of the legislation, we have had similar requests and declined to grant exemptions.

The Salvation Army is a religious body, they meet that criterion. They need to use the property for the purposes in their constitution and these properties most likely do not have a permitted use under your LEP to be a place of public worship.

The main issue and show stopper for me is that the Act says, ‘land that belongs to a religious body and is occupied and used in connection with”a building used or occupied solely as the residence of a minister of religion in connection with any such church or building’.

From your post the properties do not have a connection to a church and appear to be used as a Ministers residence for residential accommodation and are not used in connection with a church.

I hope this is helpful.

Regards,
Andrew

[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]

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

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