To be read with the Policy - The application of Gross Rental Valuation to mining, petroleum and resource interests for local government rating purposes found in Ministerial Circular M05-2015.
The State Government endorsed the Policy - The application of Gross Rental Valuation to mining, petroleum and resource interests for local government rating purposes with effect from September 2015, following a three year trial, providing guidelines for
the application of gross rental valuation (GRV) to mining, petroleum and other resource interests. That policy applies to:
Some of this land may be the subject of a State Agreement affecting whether that land is rateable or, if it is, the basis upon which the land will be rated. In the case of such land:
The policy set out in this document sets out the basis on which the Minister for Local Government (the Minister) will make determinations under the relevant provisions of the Local Government Act 1995 and in accordance with the Policy - The application
of Gross Rental Valuation to mining, petroleum and resource interests for local government rating purposes found in Ministerial Circular M05-2015.
This document describes the legislative and policy basis for the rating of capital improvements on land the subject of a relevant interest or resource interest. In particular, it sets out the policy that guides the Minister for Local Government’s
exercise of the power to determine the method of valuation of such land for rating purposes under s. 6.28 of the Local Government Act.
The document identifies the improvements that will be subject to rating on a gross rental value basis, providing clarity and consistency in the application of these provisions across the sector.
The second part of this document provides guidance for local governments and affected ratepayers in requesting such a determination.
The Minister will determine the method of valuation of land that is the subject of a relevant interest as defined in s. 6.29(1) of the Local Government Act to be its gross rental value if the land has on it the following capital improvements:
The Minister can determine the method of valuation of land that is the subject of a resource interest defined as land not the subject of a "relevant interest" within the meaning of s. 6.29(1) but used for:
to be its gross rental value if the land has on it the following capital improvements:
The Minister may also determine gross rental value to be the method of valuation of land that is the subject of a relevant interest or a resource interest on which other capital improvements are located if the holder of the relevant
interest and the local government agree that it should be rated on that basis.
The Minister's determinations under section 6.28(1) will be made consistently with the key values of objectivity, fairness and equity, consistency, transparency and administrative efficiency. To that end, the Minister will not approve an application for a determination under this policy (the application) unless the Minister is satisfied of the following matters.
and was given at least 28 days after receiving that information to make submissions to the local government on the proposal (the holder's submissions).
If the effect of the proposal would be to impose a different basis for rating the subject land from the basis on which one or more other relevant interests in the local government's district are rated, the local government’s reasons for the different treatment of relevant interests in the district have been provided to the Minister.
The guidance below is directed to an application for a determination under section 6.28(1) that the method of valuing the land the subject of the application for rating purposes should be its gross rental value (GRV).
The policy section of this document identifies the land that should be rated on a GRV basis under the policy and the matters of which the Minister will want to be satisfied before he or she approves an application.
Before making an application, a local government should be satisfied that:
The starting point for a local government will be the matters identified under the key values of objectivity and consistency. The local government will need to ensure that all of the matters identified under those key values are addressed. In order to do that, the local government is likely to have to consult with the holder of the relevant interest (the holder). An initial on-site meeting between representatives of the holder and the local government may be a useful way of facilitating that consultation.
Once the local government is satisfied that it has addressed all the matters identified under the key values of objectivity and consistency, the local government will need to address the key value of fairness and equity. That will involve the local government writing to the holder, addressing each of the matters identified under that key value and giving the holder at least 28 days from the day the holder receives the local government's correspondence to make submissions.
Once the local government has written to the holder and received any submissions from the holder, the council of the local government will need to consider:
Even if the council has previously considered the matter, the council must consider the submissions and the other information and resolve to make the application to the Minister. If the council resolves to make the application, it will also need to consider whether the changes which will occur if the application is approved should be phased in.
Once the council has resolved to make the application, the following should be sent to the Minister and copies to the holder:
The Minister will then consider the application and may request more information from the local government before making a determination.
The holder should consult cooperatively with a local government considering making an application, even if the holder is opposed to the application being made.
In particular, it will be important to ensure that once the consultation process has been completed:
In considering an application, the Minister may request information from the holder before making a determination.
A determination under section 6.28 is very likely to change the amount of rates payable on the affected land. More information on the determination of the rates payable.
The completed application form and relevant attachments should be sent to:
Executive DirectorSector Regulation and SupportDepartment of Local Government, Sport and Cultural Industries GPO Box 8349 Perth Business Centre WA 6849
Do not submit enquiries with this form.