Valuation of Land – Mining Tenements on land subject to Miscellaneous Licence
Section 6.26 of the Local Government Act 1995 provides that certain categories of land are not rateable, meaning that a rate bill may not be issued in relation to that land.
Recently, rates that were levied on land subject to a Miscellaneous Licence under section 6.26(2)(a)(ii) of the Local Government Act 1995 (the Act) were subject to an application for review by the State Administrative Tribunal (SAT).
Miscellaneous licenses typically provide for the placement of infrastructure to support mining activity that typically occurs on other lots of land, under a different form of land tenure.
On 23 January 2024 the SAT provided a ruling on the issue.
The SAT judgement confirms any land subject to a Miscellaneous Licence is not rateable, regardless of whether the land is occupied, or what kind of assets or infrastructure may be installed on the land.
Similarly, land with a non-rateable status continues to be non-rateable irrespective of what method of valuation may be applied to that land.
While mining interests on land subject to a prospecting licence, exploration licence or mining lease are typically rateable, local governments should take care to ensure the process of imposing rates accounts for the non-rateable status of miscellaneous licences.
The applicable SAT judgement is available online.
Please direct any queries to the Statutory Approvals team at 6552 1530 or legislation@dlgsc.wa.gov.au