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This is a Bill, not an Act. For current law, see the Acts databases.
South Australia
Local Government (Rate Increases) Amendment
Bill 2016
A BILL FOR
An Act to amend the
Local
Government Act 1999
.
Contents
Part 2—Amendment of Local Government
Act 1999
4Amendment of section 153—Declaration of
general rate (including differential general rates)
302CReview of
certain operations of Act
Schedule 1—Transitional
provision
The Parliament of South Australia enacts as
follows:
This Act may be cited as the Local Government (Rate Increases) Amendment
Act 2016.
This Act will come into operation on 1 July 2016.
In this Act, a provision under a heading referring to the amendment of a
specified Act amends the Act so specified.
Part 2—Amendment
of Local Government
Act 1999
4—Amendment
of section 153—Declaration of general rate (including differential general
rates)
Section 153—after subsection (5) insert:
(6) For the
purposes of this section, ESCOSA must determine on a quarterly basis an index
that measures changes in the costs incurred by councils for ordinary council
activities funded from revenue from general rates (the Local Government
Cost Index).
(7) ESCOSA must, within 7 days of making a determination of the Local
Government Cost Index, publish the determination in the Gazette and on a website
determined by ESCOSA.
(8) ESCOSA must, by notice in the Gazette published not later than
31 December in each year, determine the local government cost
inflation rate for the following financial year.
(9) In determining the local government cost inflation rate, ESCOSA must
have regard to—
(a) the average of the Local Government Cost Index for the 4 quarters
of the immediately preceding financial year; and
(b) the CPI for the quarter immediately preceding the
determination,
and may have regard to any other matter ESCOSA thinks relevant.
(10) Subject to a
determination of ESCOSA under
subsection (11)
to the contrary, a council must not fix rates under this section for a
particular financial year that will result in the council recovering from
general rates charged on land within the area of the council for that financial
year an amount (in total) that exceeds the sum of—
(a) the amount (in
total) recovered (or expected to be recovered) by the council from general rates
charged on the same land for the immediately preceding financial year;
plus
(b) an amount determined by multiplying the amount referred to in
paragraph (a)
by the local government cost inflation rate for that financial
year.
(11) ESCOSA may, on an
application under this subsection by a council, if satisfied that it is
appropriate to do so, make a determination under the
Essential
Services Commission Act 2002
that—
(a) if the application is of a kind contemplated by
subsection (16)
—the council may fix rates for the financial years (not
exceeding 5) to which the application relates; or
(b) in any case—the council may fix rates for the financial year to
which the application relates,
such that the council will recover from general rates in that year or years
an amount that exceeds the amount authorised under
subsection (10)
by an amount specified by ESCOSA in the determination (whether by
reference to a percentage increase or otherwise).
(12) An application
under
subsection (11)
must—
(a) be made before 1 April in the financial year immediately
preceding the particular financial year in which it is proposed that the rates
will apply; and
(b) be made in the manner and form determined by ESCOSA; and
(c) set out the reasons for the proposed rate of increase in general rates
above the local government cost inflation rate; and
(d) include, so far as is reasonably practicable, information as to the
likely impact of the proposed increase on ratepayers; and
(e) include such other information as is determined by ESCOSA.
(13) A council must, in
relation to an application under
subsection (11)
—
(a) follow its public consultation policy; and
(b) comply with the requirements set out in the guidelines published under
subsection (18)
, as in force from time to time.
(14) A council must cause an application under
subsection (11)
to be published—
(a) on a website determined by the council; and
(b) on a website determined by the LGA.
(15) ESCOSA must cause an application under
subsection (11)
to be published on a website determined by ESCOSA.
(16) The following
provisions apply in relation to an application under
subsection (11)
—
(a) ESCOSA may, without
further inquiry, be satisfied that it is appropriate to make a determination
under that subsection if—
(i) the application relates to, or forms part of, a financial plan of the
council extending not more than the 5 financial years following the date of
the application; and
(ii) the council has complied with
subsection (13)
in relation to the application; and
(iii) having regard to the public consultation, the financial plan has the
general support of the relevant community;
(b) ESCOSA may,
without further inquiry, be satisfied that it is appropriate to make a
determination under that subsection if—
(i) the council is a growth council; and
(ii) the council has complied with
subsection (13)
in relation to the application; and
(iii) the amount of excess general rates sought by the application is, in
the opinion of ESCOSA, appropriate having regard to the projected growth rate of
the council;
(c) if satisfied of the matters set out in a preceding paragraph, ESCOSA
should determine that the council may fix the rates as proposed in the
application for a specified number of financial years (not
exceeding 5).
(17) If ESCOSA makes a determination under
subsection (11)
, the
Essential
Services Commission Act 2002
will be taken to apply in relation to the determination subject to such
modifications as are prescribed by regulations made on the recommendation of the
Minister after consultation with ESCOSA.
(a) prepare guidelines for the purposes of this section setting out the
public consultation requirements relating to an application under
subsection (11)
; and
(b) submit the guidelines to the Minister for approval; and
(c) on being so approved, publish the guidelines in the Gazette,
and the guidelines will be taken to have effect from the time they are so
published.
(19) ESCOSA may, with the approval of the Minister and by notice in the
Gazette, vary, substitute or revoke the guidelines.
(20) In this section—
ESCOSA means the Essential Services Commission established
under the
Essential
Services Commission Act 2002
;
growth council means a council declared by the Minister by
notice in the Gazette to be a growth council.
After section 302B insert:
302C—Review of certain operations of
Act
(1) The Minister
must cause a review of the operation of this Act (as amended by the
Local
Government (Rate Increases) Amendment Act 2016
) to be conducted, and a report provided to the Minister, by
31 December 2021.
(2) The Minister must, within 6 sitting days after receiving a report
under
subsection (1)
, cause a copy of the report to be laid before both Houses of
Parliament.
Schedule 1—Transitional
provision
(1) ESCOSA must, as
soon as is reasonably practicable after the commencement day, determine the
Local Government Cost Index for the each of the 4 quarters of the financial
year that immediately precedes the financial year in which the commencement day
occurs.
(2) ESCOSA must, within 7 days of making the determinations under
subclause (1)
, publish the determinations in the Gazette and on a website determined by
ESCOSA.
(3) In this clause—
commencement day means the day on which this clause comes
into operation;
Local Government Cost Index has the same meaning as in
section 153(6) of the
Local
Government Act 1999
(as enacted by the
Local
Government (Rate Increases) Amendment Act 2016
).