Hanna, Michael --- "Update: Exemption from Local Government Rates" [1991] AboriginalLawB 12; (1991) 1(49) Aboriginal Law Bulletin 2

• Exemption From Local Government Rates

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Exemption from Local Government Rates

by Michael Hanna

Aboriginal organisations providing housing or other welfare services to their communities continue to face difficulties in seeking exemption from some taxes, including local government rates.

Since June 1989, Nungera Co-Operative Society, an Aboriginal housing co-operative at Maclean in northern NSW has been applying to Maclean Shire Council for exemption, as a public benevolent institution or public charity under s.132(l)(d) of the NSW Local Government Act. Although the Australian Taxation Office recognises Nungera as a public benevolent institution for exemption from relevant Commonwealth taxes, Maclean Shire Council is still refusing to exempt it. An appeal was recently lodged with the NSW Land and Environment Court. A similar appeal was also lodged on behalf of Tingha Aboriginal Corporation, another housing association in northern NSW.

There are no NSW court rulings on whether Aboriginal welfare organisations are charitable or benevolent institutions for tax or rates exemption purposes. It is hoped that the Court will follow the 1990 Northern Territory decision recognising Tangentyere Council Inc, an Aboriginal housing association at Alice Springs, as a public benevolent institution for pay-roll tax exemption (see [1990] AboriginalLB 33; 2(45)pg11) and a 1985 NT decision recognising Aboriginal Hostels Ltd. as a public charity for local government rates exemption.