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A blanket concession is where every single ratepayer in a differential rate category is granted a uniform concession on their rate bills. 

Under the Local Government Act 1995 (the Act), discretionary concessions are designed to assist individuals facing financial hardships or in other special circumstances.

Pensioners and seniors can apply to receive a rebate or concession on charges for local government rates through the pensioners and seniors rebate scheme.

The concession power should be administered in line with that intended purpose – blanket concessions are not permitted.

The practice of applying a blanket concession has the outcome of changing the Rate in the Dollar (RID) which the local government’s annual budget has otherwise set over those properties. This raises three potential legal issues:

• It modifies the RID in a situation other than those which are explicitly permitted under section 6.32 of the Act.  
• It changes the RID to something that has not been correctly advertised under section 6.36 of the Act.
  
• It may result in one or more of the local government’s rates falling within the ratios which required Ministerial approval under section 6.33 of the Act.

Using a blanket concession as a way of modifying rates after a budget is adopted can create disparity in the treatment of ratepayers and compromise the principles of fairness and equality. It also compromises the transparency and certainty which the Act’s mandatory advertising is intended to achieve.

DLGSC strongly urges local governments to review their current practices and ensure that concessions are used appropriately and on a case-by-case basis.

It is essential to uphold the highest standards of governance and decision-making processes and DLGSC encourages local governments to:

• reinforce internal control mechanisms
• implement training programs
• understand the potential consequences of attempting to circumvent the need for ministerial approval.

By addressing the issue promptly and proactively, local governments can safeguard the principles of transparency, accountability and fairness that are essential in maintaining public confidence.

Should you require any further guidance or assistance regarding differential rates, or any related matters please contact the Statutory Approvals team via the legislation@dlgsc.wa.gov.au inbox.