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Introduction

Local governments impose rates on properties within their district to raise revenue to fund the services and facilities provided to residents and visitors.

The quantum of rates payable is determined by three factors: the method of valuation of the land, the valuation of the land and improvements, and the rate in the dollar applied to that valuation by the local government.

Land is rated according to its unimproved value for land used predominantly for rural purposes or gross rental value for land used predominantly for non-rural purposes.

The purpose of the imposition of a differential general rate is generally to ensure that every landowner makes a reasonable contribution to the rate burden.

Objective

This policy aims to provide guidance to local governments on the legislative requirements governing the giving of notice of rates.

This applies to the imposition of differential rates and to minimum payments.

Legislative provision — Local Government Act 1995

6.36. Local government is to give notice of certain rates (extract)

1. Before imposing any differential general rates or a minimum payment that applies to a differential rate category under section 6.35(6)(c) a local government is to give local public notice of its intention to do so.
2. A local government is required to ensure that a notice referred to in subsection (1) is published in sufficient time to allow compliance with the requirements specified in this section and section 6.2(1).
3. A notice referred to in subsection (1):
   1. may be published within the period of 2 months preceding the commencement of the financial year to which the proposed rates are to apply on the basis of the local government’s estimate of the budget deficiency; and
   2. is to contain:
      1. details of each rate or minimum payment the local government intends to impose; and
      2. an invitation for submissions to be made by an elector or a ratepayer in respect of the proposed rate or minimum payment and any related matters within 21 days (or such longer period as is specified in the notice) of the notice; and
      3. any further information in relation to the matters specified in subparagraphs (i) and (ii) which may be prescribed; and
   3. is to advise electors and ratepayers that the document referred to in subsection (3A):
      1. may be inspected at a time and place specified in the notice; and
      2. is published on the local government’s official website.

3. The local government is required to prepare a document describing the objects of, and reasons for, each proposed rate and minimum payment and to publish the document on the local government’s official website.

4. The local government is required to consider any submissions received before imposing the proposed rate or minimum payment with or without modification.
5. Where a local government:
   1. in an emergency, proposes to impose a supplementary general rate or specified area rate under section 6.32(3)(a); or
   2. proposes to modify the proposed rates or minimum payments after considering any submissions under subsection (4),
   it is not required to give local public notice of that proposed supplementary general rate, specified area rate, modified rate or minimum payment.

6.35 Minimum payments (extract)

6. For the purposes of this section a minimum payment is to be applied separately, in accordance with the principles set forth in subsections (2), (3) and (4) in respect of each of the following categories:
   1. to land rated on gross rental value; and
   2. to land rated on unimproved value; and
   3. to each differential rating category where a differential general rate is imposed.

6.2 Local government to prepare annual budget (extract)

1. During the period from 1 June in a financial year to 31 August in the next financial year, or such extended time as the Minister allows, each local government is to prepare and adopt*, in the form and manner prescribed, a budget for its municipal fund for the financial year ending on the 30 June next following that 31 August.
   *Absolute majority required.

Sections referred to in s6.36 of the Act

Act 1.7. Local public notice

Where under this Act local public notice of a matter is required to be given, notice of the matter must be:

1. published on the official website of the local government concerned in accordance with the regulations; and
2. given in at least 3 of the ways prescribed for the purposes of this section.

Local Government (Administration) Regulations 1996

3A. Requirements for local public notice (Local Government Act 1995 (Act) s.1.7)

1. For the purposes of section 1.7(a), notice of a matter must be published on the local government’s official website for:
   1. the period specified in or under the Act in relation to the notice; or
   2. if no period is specified in relation to the notice — a period of not less than 7 days.
2. For the purposes of section 1.7(b), each of the following ways of giving notice of a matter is prescribed:
   1. publication in a newspaper circulating generally in the State;
   2. publication in a newspaper circulating generally in the district;
   3. publication in 1 or more newsletters circulating generally in the district;
   4. publication on the official website of the department or another State agency, as appropriate having regard to the nature of the matter and the persons likely to be affected by it, for:
      1. the period specified in or under the Act in relation to the notice; or
      2. if no period is specified in relation to the notice — a period of not less than 7 days;
   5. circulation by the local government by email, text message or similar electronic means, as appropriate having regard to the nature of the matter and the persons likely to be affected by it;
   6. exhibition on a notice board at the local government offices and each local government library in the district for:
      1. the period specified in or under the Act in relation to the notice; or
      2. if no period is specified in relation to the notice — a period of not less than 7 days;
   7. posting on a social media account administered by the local government for
      1. the period specified in or under the Act in relation to the notice; or
      2. if no period is specified in relation to the notice — a period of not less than 7 days.

Interpretation Act 1984

61. Time, computation of (extract)

1. In computing time for the purposes of a written law:
   3. where anything is to be done within a time before a specified day, the time shall not include that day;

Interpretation/application of policy

1. If a local government intends to apply differential rates or set minimum payments, it must advertise its intention to do so on the official website of the local government and in three of the prescribed ways. (Act s.1.7) This is to give ratepayers the opportunity to comment.
2. The prescribed ways a local government may a give notice are:
   1. Publication in a newspaper circulating generally in the State;
   2. Publication in a newspaper circulating generally in the district;
   3. Publication in one or more newsletters circulating generally in the district;
   4. Publication on the official website of the department;
   5. Circulation by the local government by email, text message or similar electronic means;
   6. Exhibition on a notice board at the local government offices and each local government library in the district;
   7. Posting on a social media account administered by the local government. (regulation 3A. of the Local Government (Administration) Regulations 1996).
3. The public notice process should be started on 1 May or shortly thereafter (assuming a June 30 financial year) (Act s.6.36(3)(a)).
4. Every differential general rate and/or minimum payment that is intended to be imposed must be stated in the notice. (Act s.6.36(3)(b)(i)) Local public notice is not required for specified area rates.
5. A document must be prepared which states the objects of, and reasons for, each rate and minimum payment. This should justify why one rate differs from another rate in each land valuation category (that is, each separately rated category within UV and GRV). A global statement addressing all categories or rates is insufficient. (Act s.6.36(3A)) This is so ratepayers can understand the council’s logic in arriving at each rate.
6. The notice must state the time and place that the document stating the objects of and reasons for each rate and minimum payment is available for inspection, and that the document is published on the local government’s official website. (Act s.6.36(3)(c)) A reference to a contact person or email is insufficient.
7. The notice must also invite submissions (Act s.6.36(3)(b)(ii)).
8. The notice must state the closing date for submissions (Act s.6.36(3)(b)(ii)).
9. The minimum period given in each notice for ratepayers to make submissions in response to that notice is 21 days. The day after the day of publication is the first day. For example, if the notice appears on 1 May, submissions must be able to be made until at least 22 May (Act s.6.36(3)(b)(ii)).
10. The submissions received must be considered by the local government (council) before the rates are imposed. (Act s.6.36(4)) Note, that if ministerial approval is required (see below) approval must be received before the rates are imposed.
11. A local government (council) can modify the rates after considering any submissions received. (Act s.6.36(4)) If changes are made as a result of consideration of the submissions, these do not have to be readvertised (Act s.6.36(5)).
12. If a local government imposes a differential general rate or minimum payment that differs from the rate set out in the public notice, the Local Government (Financial Management) Regulations 1996 (Regulations) provide that it must:
    1. Include details of the rate or minimum payment advertised and reasons for the difference in the annual budget (Regulations r.23(b)); and
    2. Include details of the rate or minimum payment advertised and reasons for the difference in the rate notice or in a document accompanying the rate notice (Regulations r.56(4)(b)).

Ministerial approval required

If it is proposed to impose differential general rates for either Unimproved Value or Gross Rental Value (or both) such that the rate for one or more categories is more than twice that of the lowest category (Act s.6.33(3)), or minimum payments for vacant land that apply to more than 50% of the properties in that category (Act s.6.35(5)), Ministerial approval is required.

Refer to the Rating Policy: Differential Rates and the Rating Policy: Minimum Payments for details of the documentation to be provided with the request for Ministerial approval and the timeframes for processing.

For more information please contact

Department of Local Government, Sport and Cultural Industries
Gordon Stephenson House, 140 William Street, Perth WA 6000
PO Box 8349, Perth Business Centre WA 6849
Telephone 61 8 6552 7300
Freecall 1800 634 541 (regional WA callers only)
Email: legislation@dlgsc.wa.gov.au
Translating and Interpreting Service (TIS) Telephone 13 14 50