The Western Australian government is set to introduce amendments to the Local Government Act 1995 to clarify that land held under a miscellaneous licence is exempt from local government rates.

This move comes in response to a recent Supreme Court ruling that raised uncertainty about whether local governments could levy rates on such land, potentially imposing millions of dollars in additional costs on mining and exploration companies across regional WA.

Miscellaneous licences are typically granted alongside mining or exploration tenure to facilitate essential infrastructure such as roads, aerodromes, pipelines, and staff accommodation that support mining activities.

While it has long been understood that land under these licences was not rateable under the Local Government Act 1995, the court’s decision challenged this interpretation, prompting the state government to act swiftly to restore clarity.

The forthcoming amendments aim to reinforce the long-standing precedent and the state’s original legislative intent, providing certainty to local governments and the resources sector while protecting jobs throughout regional Western Australia.

Local Government and Acting Mines and Petroleum Minister Hannah Beazley commented on the amendments: “Maintaining the competitiveness of Western Australia’s world-leading mining sector is critical to the state remaining the strongest economy in the nation and the best place to get a quality job.

“The state government, local governments and mining companies have for decades understood that land under miscellaneous licences was not rateable.

“While no local governments are currently collecting rates on land held under a miscellaneous licence, a recent Supreme Court ruling has called this understanding into question.

Beazley stated that the government is acting quickly to confirm that land under miscellaneous licences should not be subject to local government rates, reinforcing the long-held interpretation by governments and mining companies of the legislation’s original purpose.

She emphasised that the amendments will maintain the current situation, offer certainty to both the resources sector and local governments, and protect jobs across regional Western Australia.

Beazley also affirmed the government’s ongoing commitment to collaborate with the resources sector regarding its role in local communities and to work alongside local governments.

This legislative action not only codifies the historical interpretation of rating exemptions for miscellaneous licences but also safeguards the financial sustainability of local governments and the competitiveness of Western Australia’s mining industry.

The amendments are expected to be introduced to Parliament shortly and reflect a collaborative approach between the state government, local governments, and the resources sector to support regional economies and employment.