Northern Territory Second Reading Speeches

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DARWIN RATES AMENDMENT BILL 2014

Madam Speaker, I move that the bill be now read a second time.

This government is working hard to reform local government and get the legislation in order. This bill relates to the rating of the
Darwin Rates Act area, which although not in a council area, is an industrial area where rates are levied by the Territory.

The prescribed area contains approximately 260 ratepayers and consists of the East Arm logistic precinct (previously referred to as the Trade Development Zone), part of the East Arm Port area and parts of adjacent areas including Berrimah, Tivendale and Wishart.


Under the act, I, as the Minister for Local Government and Regions, set the rates for the prescribed area. The rates are usually set to align with rates charged for light industrial areas by the City of Darwin or City of Palmerston councils.


As we are putting the local government legislation in order, we are putting this act in order too. This is a very old act, which began as an ordinance in 1971. It is definitely time to bring it in to the 21
st century.

The best way to deal with this legislation has been to align various provisions of the
Local Government Act. The drafting introduces maximum flexibility, modernises many parts of the provisions and repeals provisions that are no longer needed, both in the act and the regulations.

The previous description of the area covered by the act has been translated into a map and is referred to by its compiled plan number. The map reflects the exact area that was previously covered in the description contained in the regulations. While it will be possible to declare additional prescribed areas in the future, the current prescribed area is not being expanded and no new areas are being declared by this legislation.


The name of the act has been confusing because it sounds as if it relates to City of Darwin rates. Of course, rates for the City of Darwin are set by the council under the
Local Government Act and do not come under this act.

To clear up the confusion and for practical flexibility, the name of the act is being changed to the
Northern Territory Rates Act. As the Darwin Rates Act is outdated and has rarely been given attention, all the flexible ways of rating contained in the Local Government Act have been imported.

There can be different bases of rates, differential rating and flat rating. All of the exemptions under the
Local Government Act have been brought in as well.

These amendments also enable me, as the Minister for Local Government and Regions, to set the interest rate for overdue rates. In the current act, interest on overdue rates is called a penalty and is set at 1.5% for each month. It is more practical and more in line with the
Local Government Act if the setting of the interest rate occurs at the same time the rates are declared. I intend to set the interest rate at a level comparative to the interest rate set by municipal councils.

The penalty provisions have modernised and the penalties are now in tune with modern policy on such matters. The regulations have been amended to abolish outdated forms and, as I mentioned previously, replaced an almost incomprehensible description with a map reference.


Madam Speaker, I commend the bill to honourable members and I table the explanatory statement to accompany the bill.


Debate adjourned.

 


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