Sector update on mandatory rating exemptions for electricity generation

Facilitated on 21 October, members expressed broad support for continued advocacy focused on fairness, equity and councils' ability to recover rates from commercial electricity generation activities.

The webinar on mandatory rating exemptions generated plenty of discussion among members, with the key themes summarised below:

Key themes

Fairness for local ratepayers

Members noted that the current legislative arrangements result in electricity generators receiving concessions that are not available to most other commercial enterprises. This means local households, farmers and businesses are left carrying a greater share of local government costs.

Outdated legislation

The current arrangements were introduced more than 25 years ago. Participants generally agreed that the electricity generation sector has changed significantly since that time and that existing legislation warrants review.

Supporting regional communities

Members highlighted that they provide and maintain much of the local infrastructure that supports electricity generation projects, including roads used during construction, operation and maintenance activities. Heavy vehicles and large equipment can place considerable pressure on local road networks, resulting in additional costs for councils and their communities.

Energy agnostic approach

There was broad agreement that advocacy should remain energy agnostic. The discussion focused on rating equity rather than energy policy, recognising that the issue applies to commercial electricity generation irrespective of the source of energy.

Local decision-making

Members expressed support for local government retaining discretion regarding how any additional revenue generated through reform should be used. Councils are best placed to determine the priorities and needs of their communities.

Background

Mandatory rating exemptions for land used for electricity generation is a live advocacy priority for LGA and for many regional councils with significant and growing energy infrastructure.

This issue has once again been brought into focus through recent media, reflecting the continuing concern about fair and equitable rates on energy sector developments.

LGA has pursued reform over several years, supported by independent economic analysis and engagement across government and the Parliament.

We are continuing that work and are currently developing the next phase of our advocacy.

Next steps

LGA will continue engaging with the State Government regarding potential legislative reform and will keep councils informed of future developments.

Councils are encouraged to continue raising awareness of the issue through local engagement with stakeholders and elected representatives.

Find out more

For more information regarding LGA’s work on mandatory rating exemptions for electricity generation, contact:

Andrew Lamb
Director, Advocacy
Email: andrew.lamb@lga.sa.gov.au