Local Government Legislation (Validation of Rates and Charges) Amendment Bill 2018
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
Referred to Economics and Governance Committee
▸14 members spoke13 support1 mixed
As Minister for Local Government, introduced and defended the bill to validate rates and charges levied by councils that may have made procedural errors in their budget resolutions following the Supreme Court decision in Linville Holdings v Fraser Coast Regional Council.
“Queensland local governments and ratepayers expect and deserve to have clarity and certainty when it comes to delivery of essential services. Local governments must be financially sustainable in order to function effectively.”— 2018-03-20View Hansard
As shadow minister for local government, supported the bill while raising concerns about the department's oversight role and calling for assurance that due diligence has been done to prevent future similar issues.
“Because of this, I am pleased to advise that the LNP will not be opposing the bill.”— 2018-03-20View Hansard
As committee chair, supported the bill to resolve the situation affecting 25 councils identified as having similar deficiencies to Fraser Coast Regional Council, while urging councils to improve compliance.
“For the continued stability of budgets of local governments in Queensland, I urge members of the House to support this bill and commend it to the House.”— 2018-03-20View Hansard
As a former mayor, supported the bill while acknowledging concerns about its retrospectivity and emphasising the need for better departmental guidance to help councils comply with statutory requirements.
“In the interests of preserving efficiency and financial surety in local government, the committee acknowledges the need for this legislation to apply to past rates and charges.”— 2018-03-20View Hansard
Supported the bill while expressing concern that 25 of 77 councils had failed to comply with basic legislative requirements, calling for better education and compliance monitoring.
“There are 77 local governments in Queensland and 25 have levied charges incorrectly. It is a figure that is simply astounding.”— 2018-03-20View Hansard
Supported the bill emphasising the importance of financial surety for regional and outback councils which have small rate bases and play significant roles in economic development and community support.
“Validating rates and charges is extremely important and financial surety is paramount for every council.”— 2018-03-20View Hansard
As a former councillor of 12 years, supported the bill while expressing difficulty understanding how councils reached this situation given the clear training and support available from the department and LGAQ.
“We need to ensure that expenditure for these projects by local government is not in doubt, that they are set in stone and secure for use in local communities.”— 2018-03-20View Hansard
As a former deputy mayor for 12 years, supported the bill while criticising the department of local government for failing to detect compliance issues in a third of Queensland councils.
“In view of the potentially serious consequences for councils stemming from the judgement made by the Supreme Court of Queensland, I do not oppose the bill.”— 2018-03-20View Hansard
Supported the bill explaining the financial importance of rates to councils and the need for retrospective legislation to provide certainty to ratepayers and protect council liquidity.
“These amendments have been progressed as quickly as possible to provide financial surety to local governments and, importantly, certainty to ratepayers.”— 2018-03-20View Hansard
Supported the need for the legislation but was highly critical of the Fraser Coast Regional Council, the Auditor-General, LGAQ and the department, describing the situation as 'total incompetence' and a 'cover-up'.
“This bill has been introduced to cover up total incompetence from the department down.”— 2018-03-20View Hansard
As a former Somerset Regional Council councillor, supported the bill and endorsed the committee's recommendations for the department to monitor council compliance over the next two financial years.
“In that regard I am pleased to support the recommendations of the committee.”— 2018-03-20View Hansard
Supported the bill while criticising retrospective legislation as 'anathema' and describing the situation as a 'shemozzle' that raises questions about what other compliance failures exist across councils.
“While we are supporting this legislation before the House, it is not because we believe that retrospective legislation is a good idea but because the mistakes that have been made could cause greater harm if left unaddressed.”— 2018-03-20View Hansard
Supported the bill as sensible legislation that addresses gross inefficiencies and provides financial surety to local governments while meeting ratepayers' expectations.
“This is sensible legislation. This is what the people of Queensland expect us to do in this chamber.”— 2018-03-20View Hansard
As a former local government minister, supported the bill accepting retrospectivity when it restores original intent, while defending local government autonomy against potential erosion by state government.
“I fully support this bill. An error was made and the minister is doing the right thing in tidying it up to ensure that there is not pandemonium on the rates front.”— 2018-03-20View Hansard
Plain English Summary
Overview
This bill validates council rates and charges that may have been technically invalid due to a procedural issue identified by the Supreme Court. In 2017, the court ruled that Fraser Coast Regional Council's rates were invalid because the council adopted its budget without passing a specific resolution on what rates to levy. This bill retrospectively validates rates levied by all Queensland councils up to 30 June 2018.
Who it affects
This primarily affects local councils by giving them certainty that their rates are valid. For ratepayers, it confirms that rates already paid were lawful and cannot be challenged on procedural grounds.
Key changes
- Validates rates and charges levied by local governments up to 30 June 2018 without the required specific budget resolution
- Applies to Brisbane City Council under the City of Brisbane Act 2010 and all other councils under the Local Government Act 2009
- Validates related actions including debt recovery proceedings, land sales, and interest charges on unpaid rates
- Operates retrospectively to cover rates levied under current and repealed local government laws