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FACT SHEET
Local Government Amendment (Rates) Bill 2017
The Local Government Amendment (Rates) Bill 2017 (the Bill) makes changes to the local
government rating system including:
clarifying that exemptions from non-service rates under section 87(1)(b) of the Local Government
Act 1993 do not apply to Crown land that is subject to leases, and licences that confer a right to
exclusive occupation and are used for commercial or private use;
providing an exemption from non-service rates for unallocated seabed Crown land and seabed
Crown land within municipal areas that supports a marine farming lease made under Part 4 of
the Marine Farming Planning Act 1995;
extending the definition of municipal area to include land that adjoins municipal areas in
certain circumstances;
validating all current and previous rates notices that were issued in relation to land
previously subject to an exemption under section 87(1)(b) of the Local Government
Act, other than those rates notices issued to the Crown; and
amending section 120 of the Local Government Act in relation to the liability of rates,
specifically in relation to Crown land leases and licences.
Crown land exemptions
The Bill clarifies that rating of Crown land is based on land usage rather than ownership. Crown
land lease holders, and licence holders where the lease or licence is issued for a non-public use
(ie commercial or private) will not be eligible for an exemption from non-service rates under
section 87(1)(b) of the Local Government Act. Licence holders, where their licence does not
confer a right to exclusive occupation or if the licence is issued for the benefit of the Crown, will
continue to be exempted from non-service rates.
The Bill provides the capacity for councils to ensure consistency and equity for ratepayers and
ensures that those who exclusively use reserved Crown land for commercial or private purposes,
contribute to the infrastructure and services provided by councils to their communities through
the payment of general rates.
The Bill also provides the capacity for councils to ensure that commercial operators on exempted
Crown land do not gain an advantage, by not being rated, over commercial operators on either
non-government owned land or unreserved Crown land which are subject to rates.
Marine farms and unallocated sea beds
The Bill provides an exemption from general rates to Crown land seabed within municipal areas
that supports a marine farming lease made under Part 4 of the Marine Farming Planning Act. This
ensures there is commercial equity between marine farms that are located within municipal areas
and outside of municipal areas. Marine farms outside municipal areas are not valued and
therefore are not liable for council rates.
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Unallocated Crown land seabed is also exempted from general rates by the Bill. This reflects the
public use of these areas. Allocated Crown land seabed, for example jetties and marinas, will
continue to be valued and therefore may be liable for council rates subject to the relevant council
rating policy.
Land attached to but outside municipal boundaries
Section 16 of the Local Government Act provides that a municipal area is an area specified in
Column 1 of Schedule 3 of the Act, and includes any accretion from the sea adjoining it, and any
part of the sea shore to the low water mark adjoining it.
The Valuer-General has a duty to value Crown land within a municipal area. Councils can only
rate land that is valued.
The Bill clarifies that where either a portion of a development or a right to occupation extends
outside the municipal boundary, although a logical extension from the municipal boundary, or a
development adjoins the municipal boundary, it is included as being part of the municipal area.
Validation of rate notices
The Bill provides for the validation of past rates notices issued for areas of land attached to but
outside municipal boundaries and Crown land as defined in section 87(1)(b) of the Local
Government Act.
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