Local Government Legislation (Validation of Rates and Charges) Amendment Bill 2018
Plain English Summary
Overview
This bill retrospectively validates council rates and charges across Queensland that may have been technically invalid due to a procedural issue. In 2017, the Supreme Court ruled that Fraser Coast Regional Council's rates were invalid because the council adopted its budget without passing a separate resolution specifically deciding what rates to levy. Because many other councils may have followed the same practice, this bill validates all such rates and charges state-wide for financial years up to 30 June 2018.
Who it affects
This affects all Queensland ratepayers and local councils. It confirms that rates already paid were lawful, and ensures councils can continue to collect unpaid rates and pursue debt recovery without legal challenge.
Key changes
- Retrospectively validates rates and charges levied by all Queensland local governments without the specific budget resolution required by law
- Covers rates levied under both current and repealed local government legislation, going back decades
- Validates related council actions including court proceedings for unpaid rates, land sales, and interest charges
- Applies to Brisbane City Council under the City of Brisbane Act 2010 and all other councils under the Local Government Act 2009
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee15 Feb 2018View Hansard
Referred to Economics and Governance Committee
The Economics and Governance Committee examined the bill and recommended it be passed. The committee noted the bill's retrospective validation of local government rates and charges raised fundamental legislative principle concerns regarding the rights and liberties of individuals, but accepted the justification for the provisions. The committee also recommended that the Department of Local Government, Racing and Multicultural Affairs monitor local government compliance with rating processes over the following two financial years. The Queensland Government supported both recommendations.
Key findings (4)
- The bill sought to retrospectively validate rates and charges levied by local governments that may not have been levied by appropriate resolution.
- The committee identified that clauses 3 and 5 raised fundamental legislative principle concerns about retrospective effects on rights and liberties of individuals.
- The committee accepted the justification for retrospective validation given the need to ensure certainty for local government revenue.
- The committee recommended ongoing departmental monitoring of local government compliance with statutory rating requirements for 2018/19 and 2019/20.
Recommendations (2)
- The committee recommends the Local Government Legislation (Validation of Rates and Charges) Amendment Bill 2018 be passed.
- The committee recommends that the Department of Local Government, Racing and Multicultural Affairs monitor how local governments are levying their rates and charges over the next two financial years, 2018/19 and 2019/20, to ensure local governments are aware of the proper processes and are complying with the statutory requirements.
Committee report tabled
▸Second Reading20 Mar 2018View Hansard
▸14 members spoke14 support
Introduced and defended the bill as necessary to address the financial exposure of Queensland councils following a Supreme Court ruling that Fraser Coast Regional Council had invalidly levied rates and charges.
“Queensland local governments and ratepayers expect and deserve to have clarity and certainty when it comes to delivery of essential services.”— 2018-03-20View Hansard
Supported the bill as shadow minister for local government while expressing concern about retrospectivity and questioning why the department had not picked up the compliance issues earlier.
“I am pleased to advise that the LNP will not be opposing the bill.”— 2018-03-20View Hansard
Spoke in favour of the bill as committee chair, explaining the procedural issue and emphasising that councils must comply with the Local Government Act going forward.
“Without state government action to rectify this problem, local governments might be left with a difficult and extensive problem which would impact on the proper running of councils.”— 2018-03-20View Hansard
Supported the bill as committee deputy chair while raising concerns about retrospectivity and the need for education of council CEOs on correct procedures.
“It is necessary to validate past rates and charges through this bill to ensure the continued effective operation of local government.”— 2018-03-20View Hansard
Spoke in favour of the bill as a committee member, emphasising the need to restore public confidence in local government after 25 councils were found to have levied rates incorrectly.
“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 while highlighting the importance of financial surety for regional and western councils that rely on a small rate base.
“Validating rates and charges is extremely important and financial surety is paramount for every council.”— 2018-03-20View Hansard
Spoke in favour as a former councillor, noting that local governments are now expending large amounts on projects traditionally outside their scope and need financial certainty.
“It is essential that the expenditure that they make on these projects cannot be challenged by an organisation outside that may or may not have a beef against a particular project.”— 2018-03-20View Hansard
Supported the bill as a former councillor and deputy mayor while criticising the department of local government for failing to pick up the compliance issue across 26 councils.
“How is it that the department, which should be overseeing the operations of councils, did not pick this up?”— 2018-03-20View Hansard
Spoke in support, explaining the legal background of the Linville Holdings case and the importance of rates and charges as a revenue source for councils.
“Rates and charges are a major source of funding for local governments.”— 2018-03-20View Hansard
Supported the bill but was highly critical of the Fraser Coast Regional Council's incompetence and the department's failure to detect the issue over three years.
“This bill has been introduced to cover up total incompetence from the department down.”— 2018-03-20View Hansard
Spoke in support as a former councillor, noting the bill was needed to protect the financial position of 25 affected councils.
“I am pleased to support the recommendations of the committee.”— 2018-03-20View Hansard
Supported the bill reluctantly, describing it as fixing a 'shemozzle' and warning that the compliance failure was a canary in the cage for wider governance issues in local government.
“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 to address gross inefficiency in council processes and provide financial surety to local governments.
“This is sensible legislation. This is what the people of Queensland expect us to do in this chamber.”— 2018-03-20View Hansard
Supported the bill and defended the autonomy of local government, arguing against using the compliance failure as justification for eroding council independence.
“Whilst philosophically I do not like any retrospectivity in legislation, I will accept it when it is to effectively state what was always the intent.”— 2018-03-20View Hansard
Assent date: 29 March 2018