WA to cut mining license rates

The WA Government has passed laws to revise the tax status of miscellaneous licenses to ensure they do not attract local government rates.

While land held under miscellaneous licences has long been understood to not be rateable under the Local Government Act 1995, the Supreme Court of WA has recently ruled local governments can levy rates on land held under these licences.

This ruling has the potential to incur millions of dollars in additional costs for mining and exploration companies throughout the state.

As a result, the WA Government is moving to amend the Act by clarifying that land held under these licences is exempt from local government rates.

Miscellaneous licences are generally used, alongside underlying mining or exploration tenure, to facilitate infrastructure such as roads, aerodromes, pipelines and staff accommodation needed to support mining activities.

WA Mines and Petroleum Minister Hannah Beazley says maintaining the competitiveness of the state’s mining sector is critical to WA’s economy.

“The [WA] Government, local governments and mining companies have for decades understood that land under miscellaneous licences was not rateable,” she said.

“While no local governments are currently collecting rates on land held under a miscellaneous licence, a recent Supreme Court ruling has called this understanding into question.

The amendments sought by the WA Government will restore a long-understood precedent, reflect the state’s longstanding intent and provide certainty to local governments and resources companies, protecting jobs throughout regional WA.

“We’ll continue to engage with the resources sector on how it contributes to local communities and works with local governments,” Minister Beazley said.