The Northern Territory Manual for Council Staff working ... · The Territory makes no...

dhcd.nt.gov.au

of 35 March 2017, version 12

Illustrations by Shane Stringer

Disclaimer: The Territory makes no representation or warranty as to, and accepts no liability for, the accuracy or correctness of any information and materials (including any interpretation of that information) provided by this document. To the extent permitted by law, the Territory accepts no liability whatsoever in relation to the information and materials contained in this document, or the views expressed in the information and materials, or any use of, or reliance on, such information and materials by any person, Council or other entity.

The Northern Territory Manual for Council Staff working with Rates and Charges

dhcd.nt.gov.au of 35 March 2017, version 12

Contents Introduction ............................................................................................................................5

Purpose of this manual .......................................................................................................5

The importance of getting it right .........................................................................................5

Rates and Charges ................................................................................................................5

Categorisation of land .........................................................................................................5

Categorisation in the rates declaration and the assessment record .................................5

Zoning and defining boundaries ......................................................................................6

Residential ......................................................................................................................6

Commercial .....................................................................................................................6

Industrial .........................................................................................................................6

Mining tenement ..............................................................................................................6

Pastoral leases ................................................................................................................7

Exemptions and Exceptions ................................................................................................7

Land which is exempt from rates .....................................................................................7

Exceptions.......................................................................................................................8

Types of rates .....................................................................................................................9

Ordinary ..........................................................................................................................9

Conditional ......................................................................................................................9

Special ............................................................................................................................9

Differential .......................................................................................................................9

Setting of rates and charges ...............................................................................................9

The structure of a rate .....................................................................................................9

Formal requirements regarding fixed charges, minimum charges, minimum rates......... 10

Allotments ..................................................................................................................... 10

Application of rates, base amounts and charges to multiple occupancy developments . 11

Revaluations ................................................................................................................. 11

Differential rates ............................................................................................................ 11

Conditionally Rateable land ........................................................................................... 12

Charges ............................................................................................................................ 13

Difference between a charge and a rate ........................................................................ 13

Fees are not charges .................................................................................................... 13

Requirements in relation to charges .............................................................................. 14

Flexibility in setting charges ........................................................................................... 14

Domestic waste management charges .......................................................................... 14


Water and sewerage charges ........................................................................................ 15

What charges cannot be used for .................................................................................. 15

Imposing a rate or charge ................................................................................................. 15

Publication of draft council plan (including council budget and draft rates declaration)...... 16

Consultation .................................................................................................................. 16

Submissions .................................................................................................................. 17

Assessment record ............................................................................................................... 17

Why it is very important ..................................................................................................... 17

What it must contain ......................................................................................................... 18

How it must be kept .......................................................................................................... 18

Certification by CEO ......................................................................................................... 19

Amendments to the assessment record ............................................................................ 19

Rates declaration ................................................................................................................. 19

Considerations .................................................................................................................. 19

Minimum requirements .................................................................................................. 19

Special rates ................................................................................................................. 20

Publication of notice ...................................................................................................... 20

Legal Advice ..................................................................................................................... 20

CEO Approval ................................................................................................................... 21

Sample regional council rates declaration ......................................................................... 21

Rates notices ....................................................................................................................... 21

Information required .......................................................................................................... 21

Instalments .................................................................................................................... 21

Other information .............................................................................................................. 21

Not an invoice ................................................................................................................... 22

No GST to be charged ...................................................................................................... 22

Sample rates notice .......................................................................................................... 22

Concessions ......................................................................................................................... 22

How council can set concessions ..................................................................................... 22

NT concession schemes ................................................................................................... 23

Deferring rates .................................................................................................................. 23

Payment of rates and charges .............................................................................................. 24

Liability ............................................................................................................................. 24

Apportionment where land rateable for part only of a financial year .................................. 24

Discount for prompt payment ............................................................................................ 25

Periodical payments.......................................................................................................... 25


Methods of payment ......................................................................................................... 25

Merchant fees on credit card payments ......................................................................... 25

Interest on unpaid rates ........................................................................................................ 25

Accrual of interest ............................................................................................................. 25

Setting the interest rate ..................................................................................................... 26

Remission of interest ........................................................................................................ 27

Rates Record ....................................................................................................................... 27

Recovery of rates and charges ............................................................................................. 27

Debt recovery ................................................................................................................... 27

Recovery by legal action ................................................................................................... 27

How to undertake court proceedings for recovery of unpaid rates and charges ............. 28

Charge against land .......................................................................................................... 28

Expenses for tracing people .............................................................................................. 29

Sale of land for unpaid rates and charges ............................................................................ 29

When ................................................................................................................................ 29

Notice required ................................................................................................................. 29

How sale is to be effected ................................................................................................. 29

Proceeds of sale ............................................................................................................... 30

Miscellaneous matters concerning rates and charges .......................................................... 30

Record keeping ................................................................................................................. 30

Certificate as to rates and charges.................................................................................... 31

Notice of transfer .............................................................................................................. 31

Refunds ............................................................................................................................ 31

Privacy and complaints......................................................................................................... 32

What information about rates is public .............................................................................. 32

What is confidential ........................................................................................................... 32

Who can ask for what ....................................................................................................... 32

Complaints about rates / Correcting the assessment record ............................................. 32

Complainant not satisfied – review process ...................................................................... 33

Key Deadlines ...................................................................................................................... 35


Introduction

Purpose of this manual

All land within a local government area is rateable unless the land falls within specified exemptions. Section 140 of the Local Government Act states that the land in a local government area is divided into 3 basic categories: rateable land; conditionally rateable land; and land that is exempt from rates. Rates are specific to local government and there is little publicly available resource material for council rates staff. This manual is intended for use by council staff responsible for the administration of rates and has been prepared by the Department of Local Government and Community Services with the assistance of experienced rate administrators. It is hoped that this manual helps partially cover the resource gap in rates administration information. In this manual, the Local Government Act is abbreviated and referred to as the LGA.

The importance of getting it right

The legislation sets out the procedures required to ensure that a council's revenue raising powers are correctly utilised. Failure to follow the requirements could lead to the rates or charges being challenged.

Rates and Charges

Categorisation of land

Categorisation in the rates declaration and the assessment record

The intention of a rates declaration is that any ratepayer can look at it and know, with reference to the assessment record if necessary, how much they will have to pay for the coming financial year. A rates declaration should not be vague. It cannot be implemented if its contents or references are arguable. The rates declaration is inextricably associated with the assessment record. The assessment record should show amongst other things, the category and location of the relevant allotment without doubt. Where councils refer to the NT Planning Scheme and categorise by zones, this is quite straightforward. For other councils, it is imperative that land described generally or by category and general location (for example, residential at Willowra) is specifically identified by


allotment in the assessment record. In relation to the relevant allotment, the assessment record must show where the land is located and what category it falls into. The location and particular allotment should be identifiable by reference to a map. If the rates declaration and assessment record are not accurate, they can be challenged.

Zoning and defining boundaries

Some of the land in the Northern Territory is zoned by virtue of being included in the NT Planning Scheme. These zones are subject to extensive consultation and are then gazzetted as official instruments. The different zones are detailed in the Northern Territory Planning Scheme. The Planning Scheme applies in municipal areas but is less likely to apply in regional and shire areas. The boundaries between different types of zones are shown on Planning Scheme maps. Councils which do not use Planning Scheme zones need to refer to maps or other resources in the assessment record to ensure there is no doubt about the identification, location and categorisation of allotments. Councils which cannot or do not take advantage of the NT Planning Scheme zones to categorise land need to have a method of categorising land for rating purposes.

Residential

Land categorised as residential is generally land used or intended for residential living.

Commercial

Land categorised as commercial is generally for use by organisations to carry out a business including a retail business.

Industrial

Land categorised as industrial is generally land used or intended for industrial or manufacturing purposes.

Mining tenement

“Mining tenement” means a statutory lease or authority authorising the commercial production of minerals, petroleum or natural gas from land. However, if some further statutory authorisation or approval is necessary for the commercial production of minerals, petroleum or natural gas from the land, such a lease or authority is not to be considered a mining tenement unless the further statutory authorisation or approval exists.


Pastoral leases

Under the Pastoral Land Act, a pastoral lease is defined as “a lease granted over Crown land for pastoral purposes and includes a pastoral homestead lease and land which, in pursuance of an arrangement under section 50 of the Pastoral Land Act, is held over by the former lessee after the expiration of the term of a pastoral lease”.

Exemptions and Exceptions

Land which is exempt from rates

The sections which deal with exemptions and exceptions to liability for rates are sections 144 and 145 of the LGA. Under section 144 of the LGA, exempt land includes:

Crown land occupied by the Territory for a public purpose (but this does not include public housing;

land of the council itself – but it is rateable if it is leased for a purpose that is not exempt for some other reason;

public places – including parks, gardens, reserves, playgrounds, sport grounds, cemeteries and roads;

land of a religious body – including a church, Minister’s residence or a religious institution;

public hospitals;

land of a public benevolent institution (PBI) or charity – only if it is used for a non-commercial purpose;

kindergartens or schools;

youth centres;

public libraries and public museums;

common property in a units plan or building development plan registered under the Real Property (Unit Titles) Act or of a scheme formed under the Unit Title Schemes Act; and

certain Aboriginal land (see heading below “Aboriginal Land”) If land is used for two or more different purposes, and one or more, but not all, the purposes are exempt, the land is not exempt from rates unless the non-exempt purpose is merely incidental to the exempt purpose. For example, an allotment may consist of a public museum containing a cafeteria. The existence of the cafeteria would not remove the exemption. However, if it were a restaurant attracting customers in its own right, it would do so.


Exceptions

Commonwealth land

Section 145(1) of the LGA states that land of the Commonwealth is only rateable if the Comonwealth agrees, and in that event, it is rateable on conditions agreed by the Commonwealth. An example may be that the Commonwealth agrees that an occupier of land under a lease from the Commonwealth is to be liable for rates. The Darwin International Airport is such an example.

Aboriginal Land

On Aboriginal Land Trust Land and Aboriginal Community Living Areas, ratepayers are those who:

(a) hold a lease from the land trust or Aboriginal community living area association; or

(b) occupy the land as licensee; or

(c) occupy the land for a commercial purpose. In the case of (a) above, the lessee is taken to be the owner and is rateable as if they were the owner of the land. In the cases of (b) and (c), before the land can be rated, and the ratepayer’s details entered into the assessment record, the council must give the occupier written notice that it proposes to seek recovery of rates from the occupier. Alternatively, an occupier’s name can be entered in the assessment record as the principal ratepayer for an allotment, on the occupier’s own application. Aboriginal Land Trusts are the entities which own land on behalf of Traditional Owners. They are created under the Commonwealth Aboriginal Land Rights (Northern Territory) Act 1976. Aboriginal land is rateable only in specified circumstances and therefore, it is important to rate the correct ratepayer. Section 145(2) of the LGA provides that a Land Trust does not pay rates. However, occupiers of land owned by the Land Trust, and holders of leasehold interests from the Trust are liable to pay rates. This means that Land Trust land that is subject to a lease or a licence conferring a right of occupancy, or is used for a commercial purpose is rateable. In the case of land subject to a lease, the ratepayer is the lessee. For land subject to a licence to occupy, or land used for a commercial purpose, the ratepayer for the land would be the person or business occupying the land.


Section 151 of the LGA provides that if the occupier is liable to pay rates, then they are the principal ratepayer. There are a couple of instances detailed in section 151 where this can change slightly, but the liability for rates remains. Note that if council is to rely on “occupation” to rate land, the rate assessment may not be entered into the assessment record and the land may not be rated until the ratepayer has been advised. The same considerations that apply to Land Trust land apply to land in an Aboriginal Community Living Area.

Types of rates

Ordinary

An ordinary rate is a rate levied on allotments based on either a valuation based charge (expressed as a percentage/fraction of the valuation), a fixed amount (also known as a fixed charge), or a combination of both a valuation based charge and a fixed charge. An ordinary rate is also called a general rate. The type of valuation that may be used can be either Unimproved Capital Value, Improved Capital Value or Annual Value. As the only valuation base that is currently generally available across the NT is Unimproved Capital Value, should a council wish to use a different basis they would need to negotiate directly with the Valuer General to include the additional base on the Valuation Roll.

Conditional

Conditional rates apply to land held under a pastoral lease which is leased from the Crown and land occupied under a mining tenement (as defined in the LGA).

Special

A special rate is a levy on specific land which receives a special benefit from the provision of a service, facility or activity.

Differential

A differential rate is a rate levied where it would be inequitable and unfair to levy a single general rate on all land in a council's area. Councils may determine different categories of rateable land based on location or classification. A council may levy a different rate for each category.

Setting of rates and charges

The structure of a rate

A valuation based rate is usually made up of three components.


(1) The first component is the unimproved capital value (UCV) of the property. In the Northern Territory, this is the valuation of the land (without improvements) provided to the council by the Valuer-General.

(2) The second component is the percentage/fraction of the land value. This is the figure that is multiplied by the unimproved capital value to give the amount payable. The percentage/fraction of the land value is sometimes referred to as the ad-valorem rate.

(3) The third component is the minimum amount that will be applied to all properties in the category.

A fixed rate has only one component, which is the rate that will apply to each property. Minimum amounts do not apply to fixed charges.

Formal requirements regarding fixed charges, minimum charges, minimum rates

Section 148 of the LGA states that a rate may be either a fixed charge or a valuation based charge or a combination of both. Section 148(2) of the LGA states that if the rate is made up of a valuation based charge it may be subject to a minimum charge (also called a minimum rate). A minimum charge is the minimum amount that has to be paid. It is based on the premise that ratepayers should at least pay this amount to cover some of the cost of services provided by the council. There is a generally accepted unwritten benchmark that councils should not raise more than 20-50% of total rates from minimum rates, otherwise, the integrity of the valuation system is compromised. Where a council is transitioning its rates system, this might not be immediately achievable.

Allotments

Section 147(1) of the LGA defines an allotment as “a parcel or part of a parcel of land for which a council proposes to make a separate assessment of rates”. A council may only divide a parcel of land that is subject to the same ownership into separate allotments if:

(a) the allotments are subject to separate occupation; or

(b) the allotments fall within different zones; or

(c) there is some other good reason for disaggregating the parcel into separate allotments.

Generally, the assessed value of an allotment is determined by the Valuer-General in accordance with the Valuation of Land Act. However, for mining tenements, the assessed value is the unimproved value, which is taken to be 20 times the annual rental payable under the tenement (see section 149(3) of the LGA).


Application of rates, base amounts and charges to multiple occupancy developments

If there is only one parcel of land (one title) but there are multiple occupancies on that parcel of land, the council has the ability to divide the parcel into separate allotments and then rate each occupancy separately. The newly created allotments would still be in the same ownership as the original parcel (section 147(2) of the LGA). Note that each allotment must be recorded separately in the assessment record for council to be able to do this. In relation to setting a minimum rate (which can only be done if the rate is a valuation based rate) for multiple occupancy developments, section 148(4) of the LGA provides that If an allotment is divided into separate parts or units that are adapted for separate occupation or use, a minimum charge may consist of a fixed amount to be multiplied by the number of separate parts or units. The LGA provides the following Example: If an allotment consists of a block of flats in separate occupation, the minimum charge could consist of a fixed amount to be multiplied by the number of flats comprised in the complex.

Revaluations

The Valuation of Land Act requires the Valuer-General to undertake a general revaluation of land in each local government area every 3 years. Normally, a revaluation has the effect of shifting the rate burden amongst ratepayers. An example may be a large increase in the value of commercial and industrial properties and a lesser increase in residential properties. If this happens, commercial and industrial properties will pay a larger proportion of rates than they have in the past, compared to residential properties. The impact on ratepayers’ rate bills can be significant if there is a marked shift in valuations. Most councils will analyse this shift and make adjustments to the rate in the dollar to lessen adverse impacts. However, this has the effect of creating different rates in the dollar for different classes of ratepayers as mentioned above. In the past, some councils have sought to lessen the impact of a revaluation by spreading an increase over a number of years.

Differential rates

Councils may decide to have a different rate in the dollar for different classes of land use or for different areas within the council boundary. It is common for councils to charge a higher rate for commercial and industrial properties than for residential properties. Farm land is normally charged a lower rate than residential properties.


An unintended consequence of revaluations can sometimes be that rates become disparate for what was previously equivalent. If council sets differential rates as a consequence, the reasons and justifications should be clearly documented.

Conditionally Rateable land

Conditionally rateable land is land which is held under a “pastoral lease” or land occupied under a “mining tenement” (see section142 of the LGA). However, it is important to note that these terms have a special meaning. Not all pastoral leases or mining tenements are included. “Pastoral lease” is defined in the Pastoral Land Act. A pastoral lease is a lease granted over Crown land for pastoral purposes and includes a pastoral homestead lease and land which, in pursuance of an arrangement under section 50 of the Pastoral Land Act, is held over by the former lessee after the expiration of the term of a pastoral lease. It is worth noting that this only applies to leases of Crown land. It is the practice of the Minister, when gazetting conditional rates on pastoral leases, to define the meaning of pastoral lease consistently with the Pastoral Land Act. Of course, there are other circumstances which might, in some contexts, be described as pastoral leases, but care needs to be taken when categorising such allotments. If pastoral leases are not of Crown land, for example a pastoral property leased from a private person, it may be preferable to categorise them as “rural” to avoid confusion. The principal ratepayer for such a property would be the “owner” as defined in the LGA. “Mining tenement” is defined in the LGA and is a statutory lease or authority authorising the commercial production of minerals, petroleum or natural gas from land. However, if some further statutory authorisation or approval is necessary for the commercial production of minerals, petroleum or natural gas from the land, such a lease or authority is not to be considered a mining tenement unless the further statutory authorisation or approval exists. The Minister responsible for the LGA determines the rate levels that councils can set for conditionally rateable land.


A council may (but does not have to) make a submission to the Minister about conditional rates for the coming financial year. Submissions must be with the Minister by the end of the January preceding the relevant financial year in which the rates will be declared. For example, a submission in relation to conditional rating for 2017-18 must be with the Minister by the end of January 2017. The submission must comply with the requirements of General Instruction No. 1 – Conditional Rating, which can be found on the website of the Department of Local Government and Community Services. By the end of April (preceding the relevant financial year in which the rates will be applied), the Minister must notify, by Gazette, the level at which councils may rate conditionally rateable land for the coming financial year. Councils then put the rate levels set by the Minister into their rates declarations to enable them to charge that rate. It is important that the words and figures in the rates declaration accurately reflect what the Minister has gazetted.

Charges

Difference between a charge and a rate

A charge is for work or services for the benefit of land, or the occupiers of land. In contrast, a rate is a tax based on the value of the land. A charge needs to be declared at the same time as the rate, and included in the rates declaration. The normal charge that is included in most rate notices is the waste management charge.

Fees are not charges

There can be confusion between charges in the context of “rates and charges” and charges in the context of “fees and charges”. Charges in the context of “rates and charges” are mandatory charges applied by council via a declaration of rates and charges. Such charges must comply with section 157 of the LGA. This is to be contrasted with the normal use of the term “fees and charges” which refers to fees set by the council under a different process, such as the charge to hire a mower or the fee to inspect a register. Where a charge is an optional fee for service, it should be included in “fees and charges” rather than “rates and charges”.


Requirements in relation to charges

If a council carries out work, or provides services, for the benefit of land, or the occupiers of land, within its area, the council may declare a charge on the land. A declaration of a charge must:

(a) state the amount or basis of the charge;

(b) identify the land to which the charge will apply; and

(c) state the purpose of the charge. The amount of a charge need not be limited to the cost of providing the service. However, it must be reasonable. The following exceptions apply:

(1) A charge may be imposed on land that is not liable to rates (including land that is exempt from rates).

(2) A charge may have a reasonable basis that differs from rates.

(3) The provisions for rate concessions do not apply to charges.

In Yeperenye Pty Ltd & Anor v Alice Springs Town Council [2011] NTSC 06, No. 13 of 2009, Alice Springs Town Council purported to declare additional charges on land where liquor outlets were situated. The additional charge was to contribute to the cost of cleaning up liquor containers in another area of Alice Springs, where waste from liquor containers was a problem. The Court held that this was not allowable. The charge on the land must relate to that actual land. The empty liquor containers were not on the land of the liquor outlets. The Supreme Court held that:

“Section 157 empowers the Council to declare a charge on land if it carries out work, or provides services, for the benefit of that land, or the occupiers of that land. The Council’s own documents show that Council collects litter in the Alice Springs area for the benefit of the whole town – not for the benefit of the 12 lots on which the charge has been declared.”

“For the charge to be lawfully levied, the service to which it relates must be genuinely, in a real or substantial sense, be performed for the benefit of the land to be charged.”

Flexibility in setting charges

Charges may be legally challenged. The council has to ensure that the charge relates to works or services for the benefit of that specific land for which the charge is imposed. For transparency purposes, there could be a separate section in the budget which shows how the charge was calculated. The costs included in the budget for that work or service should reasonably relate to the cost of providing that work or service.

Domestic waste management charges

Domestic waste management charges are for a service related to the individual property, normally being regular kerbside pick up services for


garbage and recyclable material. It may include the cost of the bins, the transport costs, labour costs, the cost of disposal, the operations of the tip, depreciation on depreciable items included in the process and provision for future rehabilitation of the waste depot site. Other council services such as street cleaning and public rubbish bin pickups are not domestic waste management charges. The charges should roughly equate to the cost of running the service. It is good practice for the council to include information in the annual plan, explaining how the charge has been calculated.

Water and sewerage charges

The West Arnhem Regional Council is the only local government council in the Northern Territory that declares a charge for the provision of water and sewerage services through the rates and charges process. The council provides these services to the Jabiru township. The costs included in the budget for providing water and sewerage services should reasonably relate to the cost of providing the service.

What charges cannot be used for

Charges declared pursuant to section 157 of the LGA are for specific council services and may not be used to cross-subsidise other council services.

Imposing a rate or charge

The council imposes a rate or charge by declaration. If there is a new class of rate, a report explaining why there was a need to create it, should be prepared and presented to the council. It is then up to council to decide whether or not to create a new class of rate. It is a decision that Council needs to consider very carefully and ensure that it has a strong argument for introducing a new rate, as it will normally have an adverse financial impact on some ratepayers and can be subject to legal challenge. The same process applies to the imposition of a charge. The charge would normally apply to a large percentage of the ratepayers and would normally be for some service or works on the land. If it is a service that all ratepayers are eligible to receive, then it should normally be funded through rates. It is normal to fund a particular service through charges if it is considered unfair or unreasonable for all ratepayers to pay for the service at the same level. The rate or charge would normally be included in the next annual declaration and commence from the time specified in the declaration.


Publication of draft council plan (including council budget and draft rates declaration)

A Council must have an annual municipal, regional or shire plan which includes, among other things, the service delivery plan and the budget (see section 23 of the LGA). The budget must show how much revenue is to be collected via rates and charges. Thus, the setting of the budget and the setting of rates and charges are closely intertwined. Each year the draft plan should be ready for publication by about March preceding the financial year the plan is to be implemented. It can be a little later (see section 24 of the LGA), but it would be ideal to have the first draft prepared by the end of February. To achieve having the draft rates and rating structure finalised by the end of February, it is essential that preparations and calculations start at the beginning of January. Normally, the council’s rates department will be asked to model a number of rate scenarios which could include percentage increases to rates in the dollar, changes to the minimum rate, changes to rate differentials and yields from the increase in rateable assessments. The results are then included in draft budget scenarios for senior management and council to consider. It is important that prior to developing the rate scenarios, the assessment records are up to date and balanced with the valuation roll. The draft council plan, which includes the anticipated rates, must be made available on the council’s website and copies must be available at every office of the council. For regional councils, this includes all the offices in the communities. The council must publish a notice on its website and in a newspaper circulating generally in the area inviting written submissions on the draft plan. The minimum time to be provided for submissions is 21 days from the date of the notice but it is preferable to provide a month.

Consultation

Who

Council would normally consult with the general community about the municipal, regional or shire plan and the effect on rates. If there was a particular class of ratepayer that might be significantly affected by a change in rates or a revaluation, the council may decide to separately consult with that section of the community.

How

Councils have a variety of ways that they advise the public about their proposed plan and budget. Some of these are public meetings, advertising in the media, presentations to community groups, website advertising, social media, information stands in shopping centres, and planned presentations at various council facilities.


Under section 24(2)(c) of the LGA, the council is required to publish a notice in a newspaper generally circulating in the area stating that the draft muncipal, regional or shire plan has been adopted by the council for consultation purposes. The notice must also state that the council will consider written submissions about the draft plan. It is good practice to include a draft rates declaration with the draft municipal, regional or shire plan. In the draft plan, it is also good practice to have a section that explains what the proposed increases are for each class and type of rate, what has been the natural increase in rates, that is, new assessments created during the year, and some examples of rate increases across the council area.

Submissions

Submissions can cover anything that is included, or not included, in the plan and budget, the rate increase, or anything else that impacts on the plan and/or budget. These submissions would normally be considered by management and included in a report to council with recommendations on responses to the submissions. After consideration of the report and submissions, the council can then either amend the plan and budget or leave it as is. Everyone who has made a submission should be advised of council’s response to their submission.

Assessment record

Why it is very important

The individual assessment records should contain all the relevant information so that a person who looks at it in conjunction with the rates declaration can know without doubt how much their rates will be. If a property does not appear in the assessment record it may not be rated. The valuations included in the assessment records should reconcile to the amounts in the valuation roll which is published by the Valuer-General. If someone wanted to challenge the amount they have been rated, they would start with the assessment record. If they could show that the assessment record is wrong, for example, wrong ownership, wrong valuation, wrong zoning, wrong location or wrong category, they may be able to show they have been incorrectly rated. It is critical that the assessment record has all the information to prove that a person’s rates have been properly calculated.


What it must contain

Under section 152 of the LGA, the assessment record must contain:

(a) a brief description of each allotment within the area and a statement of its assessed value; and

(b) if a charge is imposed on non-rateable land in the area – a brief description of the land; and

(c) the name and address of the owner of the land; and

(d) if the owner is not the principal ratepayer for the land – the name and address of the principal ratepayer; and

(e) if the land is subject to a differential rate on the basis of its use – the land use; and

(f) other information the council directs to be included in the record. These are the minimum requirements but it is important that all relevant information is contained in the record, as the assessment record is the basis of the way a person may challenge whether they have to pay rates. In areas which use zoning (or the Planning Scheme), if the assessment record does not have a correct description of the land as shown on the certificate of title, the latest valuation which is in accordance with the valuation roll or the correct zoning, the rates may be open to challenge. In places where zoning is not used to impose rates, the rates may be open to challenge if there is no adequate description and identification of the land, no clear categorisation (for example, “Willowra residential” or “Willowra commercial”) or if the other requirements of section 152 of the Act (see above) have not been met.

How it must be kept

Section 152(3) of the LGA provides that the assessment record may be kept by computer. However, it is worth noting that section 152(4) of the LGA provides that a copy of the assessment record must be available for inspection, free of charge, by any member of the public at the council's public office. This means it must be available at every office of the council which is open to the public. For regional councils, this means each council office in each community as well as at the head office. It is also important to note that section 152(5) of the LGA provides that when a person requests it, the CEO must suppress their name or address (or both) from the publicly accessible copy of the record. This may require some notation on the electronic record so that the person’s request is complied with and not inadvertently disclosed. For access at council’s community offices, perhaps the main assessment record could be kept on computer at head office with the ability to provide a printout or portion on request at community offices.


Certification by CEO

Regulation 24 of the Local Government (Accounting) Regulations provides that before a council adopts its budget for a financial year, the CEO must check all available records to ensure that all rateable land is recorded in the assessment record and certify to the council that, to the best of the CEO's knowledge, information and belief, the assessment record is a comprehensive record of all rateable land within the area. An example of CEO certification is provided at Appendix 1. It is important that this checking of all records is scheduled each year and it is important that the CEO can confidently make the certification at the appropriate time. Appropriate evidence which could be supplied to the CEO is the reconciliation of valuations between the assessment record and the valuation roll published by the Valuer-General. The certification is like “settling the information” to which the provisions of the rates declaration will be applied, in order to establish the amount of rates and charges which must be paid by each ratepayer.

Amendments to the assessment record

During the year new subdivisions, strata titles and land parcels may be added to the Valuation Roll. The Roll may also have valuations deleted during the year. The Valuer-General usually advises councils of any changes to the Valuation Roll. Section 153 of the LGA requires that a person who becomes a principal ratepayer must advise the council CEO within 28 days and advise their postal address. Similarly, a person who ceases to be the principal ratepayer must advise the council CEO within 28 days. If the postal address of a principal ratepayer changes, they must advise the council CEO within 28 days and advise their new postal address.

Rates declaration

Considerations

Minimum requirements

The matters to be included in the declaration are set out in section 155 of the LGA. At a minumum, the declaration must state:

(a) the amount to be raised for general purposes and, an amount to be raised for a special purpose, if any; and

(b) the basis or bases of the rates; and

(c) if applicable, the number of instalments and when they will be payable.


In practical terms, however, there are a number of matters that should be included, such as the date the council resolved to declare the rates, the relevant rate for each category, relevant charges for each category, the amount or basis of the charges, and the purpose of the charges.

Special rates

If special rates are imposed for the benefit of a particular part of the council area, they may be limited to allotments within the relevant part of the area. A declaration of special rates must:

(a) state the purpose for which the special rates are imposed;

(b) state the amount to be raised;

(c) state the basis of the special rates; and

(d) state whether the special rates are imposed on rateable property generally, or on rateable property within a particular part of the council area and, if they are limited to a particular part of the area, identify the relevant part.

Publication of notice

Within 21 days after declaring rates, the council must publish a notice of the declaration of the rates on its website and in a newspaper circulating generally in the council’s area. The notice must:

(a) give details of the rates;

(b) state the date on which payment of the rates will fall due and, if the council has resolved to allow payment by instalment, the date on which each instalment will fall due for payment; and

(c) give details of any discount or other concession or benefit the council has resolved to allow for prompt payment of the rates in full.

Legal Advice

Every detail of rates and charges declarations must be carefully checked and proof-read before being sent for a legal check. The legal check will not necessarily pick up mistakes in words or numbers. It will also not pick up any deficiencies in the assessment record or related processes. It is imperative that legal advice be sought to ensure the declaration is legally valid, before it is declared by council and published. In the worst case scenario, a successful legal challenge to the declaration could result in a court finding the whole document to be invalid and rates could be foregone for the whole financial year.


CEO Approval

The Chief Executive Officer of the council is responsible for the accuracy of the rates declaration because it is the CEO’s role to competently and accurately advise the Council. While the Council members formally make the declaration, they rely on the advice of the CEO.

Sample regional council rates declaration

A sample regional council rates declaration is provided at Appendix 2. For a good example of a municipal council’s rates declaration, see City of Darwin’s rates declaration on their website.

Rates notices

Information required

After the rates have been declared, rates notices are sent out to all ratepayers advising them of the rates they must pay for the financial year. Section 159 of the LGA states that a rates notice must state the due date for payment of rates either in full or, if by instalments, the due date of the first instalment. The notice must be given at least 28 days before the due date for payment of the rates or the first instalment of the rates. In addition, a rates notice would normally include a clear description of the allotment being rated, the assessed value of the land, the rate in the dollar, the total amount of rates, any charges, the interest rate that will be charged on overdue rates, methods of payment and how to apply to have any anomalies investigated.

Instalments

Section 161 of the LGA gives councils the ability to offer ratepayers the option of paying their rates by instalments. In the Northern Territory, some councils offer quarterly instalments, others offer half-yearly instalments and a small number do not allow for any instalments. It is up to the council to decide if it wishes to give its ratepayers this option.

Other information

A lot of councils include a brochure with the rates notice providing information on how to read the rates notice and explaining what the rates will be used for. It is a good opportunity for a council to provide contact details for elected members, detail how the


public can make enquiries about council services and what the rate revenue will be spent on.

Not an invoice

The rate notice is an account for the payment of rates but is not an invoice. It is a “notice” in a similar way to the way the Tax office will send a notice of assessment, rather than an invoice, in relation to personal income tax.

No GST to be charged

Local council rates are GST exempt. Refer ATO Interpretative Decision 2012/87 at: https://www.ato.gov.au/law/view/document?docid=AID/AID201287/00001.

Sample rates notice

A sample rates notice from the City of Darwin is provided at Appendix 3.

Concessions

Section 164(1) of the LGA states that a rate concession is one or more of the following:

(a) a waiver in whole or part of rates or a component of rates;

(b) a deferment in whole or part of an obligation to pay rates or a component of rates. A council may grant a rate concession on its own initiative or on application by the ratepayer.

How council can set concessions

Council should have a policy on rate concessions which clearly states on what grounds or in what circumstances a rate concession may be granted. Sections 165 to 167 of the LGA help explain the kind of concessions a council may consider:

to alleviate financial hardship (this may only be granted to a person who establishes, to the council’s satisfaction, that they will suffer financial hardship)

to correct anomalies in the operation of rating system (this may be done on the initiative of the council or on the application of an affected ratepayer). An example of this could be where rooms in a motel have been constituted under the Unit Titles Act, which creates a separate title and hence a separate assessments for each room. Even though the UCVs for each assessment may be small, the individual assessments could get caught under the minimum rates provisions. The council may then decide that paying a minimum rate for an individual motel room is unreasonable and offer the ratepayers a rate concession. The test that would be applied in most cases is the equity test, that is, “is paying a certain rate fair and

https://www.ato.gov.au/law/view/document?docid=AID/AID201287/00001


reasonable given the type of activity that is carried out on that land as compared to other ratepayers in that class”.

for a public benefit including: securing the proper development of the council’s area; preserving buildings or places of historical interest; protecting the environment; encouraging cultural activities; promoting community health or welfare; encouraging agriculture; and providing recreation or amusement for the public. However, such a rate concession may only be granted if authorised under a policy formally adopted by resolution of the council. Such a concession is subject to limitiations and conditions specified in that policy.

NT concession schemes

The Northern Territory Pensioner and Carer Concession Scheme (NTPCCS) provides financial subsidies to eligible members for electricity, water, sewerage, council rates, garbage rates, travel, spectacles, motor vehicle registration, urban public bus travel and drivers licence renewals. Each year before councils levy their rates, the NT Department of Health provides each participating council with a report detailing all those ratepayers eligible for a rate concession under the NT Pensioner and Carer Concession Scheme. Each participating council then levies the rates and applies the concession to the identified individual rate accounts and apportions the levy (less the concession) across the number of instalments allowed by the council. The councils then claim the amount of the concessions from the Department of Health. If a ratepayer becomes eligible for a concession part way through the year, they first pay their rates in full & then contact the Pension Concession Unit of the Department of Health for a pro-rata refund. The Unit contacts the council to confirm payment of the rates and then provide the refund direct to the claimant. The following year the new name appears on the report from NT Department of Health and the concession is applied automatically. Details of eligibility are at: www.health.nt.gov.au/NT_Pensioner_and_Carer_Concession_Scheme_NTPCCS/index.aspx.

Deferring rates

If a council wishes to allow rates deferral, the council should have a clear policy on the matter. Rates deferral is when council puts requests for rates and charges payments on hold for a set period or an indefinite period. Payment of the rates and charges is deferred until such time as the ratepayer’s circumstances improve or the property is sold or transferred to another entity.

http://www.health.nt.gov.au/NT_Pensioner_and_Carer_Concession_Scheme_NTPCCS/index.aspx

http://www.health.nt.gov.au/NT_Pensioner_and_Carer_Concession_Scheme_NTPCCS/index.aspx


This option would generally apply to long term cases of extreme financial hardship, or where council extends hardship assistance to self-funded pensioner and retiree ratepayers. Depending on council policy, rates and charges, or part thereof, may be deferred after consideration of the following factors:

Is the ratepayer a pensioner with a low fixed income?

Is the ratepayer aware of circumstances which will make payment difficult?

Are there long term issues which may affect the ratepayer’s ability to meet future commitments?

Council should periodically review the total amount of deferred rates and charges which have accrued against any property which is the subject of deferred rates. An example of deferment of rates is where a pensioner/s may have a high value property and consequently high rates but insufficient income to pay the rates. In these type of cases, council or council policy may allow deferring the rates until such time as the property is sold.

Payment of rates and charges

Liability

Section 150(1) of the LGA states that the owner and, where applicable, the occupier of an allotment are jointly and severally liable for rates payable in respect of an allotment. Note that if a council is to rely on “occupation” for a person or entity to be liable for rates on Land Trust land, sections 150 and 151 of the LGA apply. An occupier of an allotment (if not an owner) does not become liable for rates in respect of the allotment unless the occupier's name is entered in the assessment record. This can occur on the occupier's own application, as the principal ratepayer for the allotment, or the council can give the occupier written notice that it proposes to seek recovery of rates from the occupier. If the council gives such notice, the occupier is only liable for a proportionate part of the rates in that financial year. This does not make the occupier liable for previous rates debt on the property.

Apportionment where land rateable for part only of a financial year

If land becomes rateable during the course of a financial year, or ceases to be rateable during the course of a financial year, the ratepayer is only liable for a proportion of the annual rates, based on the number of days for which the land is rateable in the financial year. The council must make any refund or remission of rates necessary to give effect to this.


Discount for prompt payment

A council may resolve to allow a discount, or some other form of concession or benefit, for prompt payment of rates in full. If the council resolves to allow a discount for prompt payment of rates in full, the rate notice must state the percentage discount, the conditions on which it is to be allowed, and both the discounted and the undiscounted amount payable.

Periodical payments

Ratepayers experiencing financial difficulty may enter into an arrangement to pay their rates over a period of time that is in accordance with council policy. It is important that councils have good debt collection procedures so that individual arrangements are closely monitored and defaults followed up quickly.

Methods of payment

Councils can decide how they will accept payment. There are a myriad of payment methods that most councils employ for ratepayer convenience.

Merchant fees on credit card payments

A council may decide to impose a surcharge on payments made by credit card to offset the fee that the council is charged by its bank. This is a separate fee and is not charged on the rate notice, although advice must be provided that the fee will be charged. The fee is charged to the ratepayer’s credit card when they make a payment.

Interest on unpaid rates

Accrual of interest

Section 162(1) of the LGA states that if rates are not paid by the due date, interest accrues on the amount of the unpaid rates at the relevant interest rate. Interest is calculated on a daily basis on the amount in default (exclusive of interest) from the due date until the date of payment. This is called simple interest. There is a note at section 162(1) of the LGA which advises: If the ratepayer defaults in payment, all remaining instalments become due and payable. Interest therefore accrues on the total amount of the unpaid rates and not merely the amount of the instalment. (See section 161(2)).


It should be noted that although the above reference means that technically all instalments become due and payable if a ratepayer defaults and interest can accrue on the total of unpaid rates, Section 161(3) allows for a council to relieve a ratepayer from the consequences of default to an extent decided by council. Demonstrating best practice, the larger councils and some of the regional councils have resolved that interest will only accrue on the overdue instalment amounts, not the whole outstanding balance. The relevant interest rate is a rate interest fixed by the council as the relevant interest rate. A council may:

(a) fix a rate of interest as the relevant interest rate; or

(b) vary a rate of interest previously fixed as the relevant interest rate.

Setting the interest rate

It is not good practice for council to set the interest rate without providing information to the ratepayers as to how it was derived. Some councils adopt an interest rate slightly higher than a credit card rate, based on the premise that a person will normally pay the bill with the highest interest rate first (the rates bill). With interest rates significantly reducing over the last few years, councils have not followed suit to lower their interest charge. A defendable basis on which to base the interest rate, is to use the same rate as that charged by the Northern Territory Government for overdue tax debts. The rate charged by the Northern Territory Government is generally similar to what other state jurisdictions charge. For the 2015-16 financial year, the interest rate was 10.15%. Details can be found at: http://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/AboutTerritoryRevenueOffice/Pages/InterestPenalties.aspx. Because the interest rate mentioned above may not be available on the Treasury website until June of the preceding financial year, for the purposes of consultation and within council plans, the interest rate could be referred to as “the statutory interest rate

set out at section 35 of the Northern Territory’s Taxation Administration Act.” The actual figure can be inserted into a declaration before the rates are declared. As an alternative to obtaining the figure from the Treasury website indicated above, councils can calculate the rate by using the following process:

1. Once it is a few business days into June, go to the following link: http://www.rba.gov.au/statistics/tables/#interest-rates and click on “Interest Rates and Yields – Money Market – Monthly – F1.1”.

2. Go to column E in the spreadsheet which is titled “3-month BABs/NCDs” and find the May figure for the preceding financial year. For May 2016 it was 2.01%.

3. Add 8% to the May figure and that is the statutory rate. For the 2016-17 financial year it is 10.01%.

http://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/AboutTerritoryRevenueOffice/Pages/InterestPenalties.aspx

http://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/AboutTerritoryRevenueOffice/Pages/InterestPenalties.aspx

http://www.rba.gov.au/statistics/tables/#interest-rates


Remission of interest

Section 163 of the LGA states that the council may remit interest wholly or in part. Council should adopt a policy which clearly states under what circumstances remission of interest will be allowed.

Rates Record

The rates record (also known as the rate book) is different from the assessment record. The rates record includes the financial transactions of individual accounts and some of the information which is also on the assessment record. Regulation 24 of the Local Government (Accounting) Regulations provides that the rates record must show, in relation to each rateable allotment (this includes allotments where only charges are levied):

(a) all rates and charges levied on the allotment;

(b) penalties imposed;

(c) the amount of rates written off (if any); and

(d) the amount of payments made. The rates record can contain any additional information that the council considers appropriate. It is important that it has as much detail as possible.

Recovery of rates and charges

Debt recovery

It is up to each council to decide what debt recovery processes it will employ. Some councils contract professional debt collectors, some councils do it in-house and other councils will have a combination of contractors and in-house staff. Regardless of what system is used, it is imperative that finance staff closely monitor the council’s overdue rate debtors and take prompt action to recover outstanding amounts.

Recovery by legal action

Rates may be recovered as a debt due to the council from the principal ratepayer or any other ratepayer by action in a court of competent jurisdiction. The proceedings may be commenced at any time within 6 years after the rates are imposed.


How to undertake court proceedings for recovery of unpaid rates and charges

Debts up to $25,000 are heard by the Northern Territory Civil and Administrative Tribunal (the Tribunal). The first step is to make an initiating application to the Registrar of the Tribunal, with details of the claim (that is the unpaid rates) and pay the application fee. If the application is accepted, the Registrar sends out a copy of the application to the council to serve the debtor. The council and the debtor will then be asked to attend a Tribunal hearing. The Tribunal may ask the council and the debtor to attend a compulsory conference, led by a member of the Tribunal, to work out how to settle the dispute. More information on Tribunal proceedings can be accessed at: https://nt.gov.au/law/courts-and-tribunals/northern-territory-civil-and-administrative-tribunal-ntcat/how-to-apply-to-ntcat. Where the debt is larger than $25,000 but less than $250,000, the matter is heard by the Local Court. The first step is to file a Statement of Claim at the Court, which includes all the details of the unpaid rates (such as principal, interest and costs). When the Statement of Claim is filed (stamped by the Court and noted on their records), it is to be personally served on the debtor. Upon being served with the Statement of Claim, the debtor has 28 days to either pay the claim or lodge a defence with the Court. After the expiry of the 28 days, the matter is heard by a Judge.

Charge against land

If rates are not paid by the due date, the rates become a charge on the land to which they relate (section 170 of the LGA). However, there are some exceptions to this general rule:

(1) Rates do not become a charge on land unless the owner of the land is a ratepayer who is liable for the rates that are in arrears.

(2) Rates cannot become a charge on Aboriginal land.

After rates have been in arrears for at least 6 months, the council may apply to the appropriate registration authority for registration of the charge over the land to which the charge relates. The registration authority must, on payment of the appropriate fee by the council:

(a) register the charge as an overriding statutory charge; and

(b) notify all persons with a registered interest in or over the land of the registration of the charge.

https://nt.gov.au/law/courts-and-tribunals/northern-territory-civil-and-administrative-tribunal-ntcat/how-to-apply-to-ntcat

https://nt.gov.au/law/courts-and-tribunals/northern-territory-civil-and-administrative-tribunal-ntcat/how-to-apply-to-ntcat


A registration authority must cancel registration of a charge if the council applies for the cancellation. The council must apply for cancellation if the liability to which the charge relates is fully satisfied, and may apply for cancellation for any other reason.

Expenses for tracing people

Section 168(b)(ii) of the LGA states that rates include costs reasonably incurred by the council in recovering, or attempting to recover them.

Sale of land for unpaid rates and charges

When

Section 173 of the LGA states that if rates have been in arrears for at least 3 years and the council has put an overriding statutory charge on the property for at least 6 months, then the council may sell the land.

Notice required

Prior to selling the land, the council must give notice to the principal ratepayer at the address showing on the assessment record. The notice has to specifically state the period for which rates have been in arrears, the total amount currently outstanding on the land and it must warn that if that amount is not paid in full within a stated period (at least 1 month) after the date of the notice, the council will sell the land for non-payment of rates. A copy of the notice must also be given to any other person with a registered interest in the land. A copy must also be given to the relevant Minister if the land is a pastoral or other lease granted by the Territory, or if it is a mining tenement. If the whereabouts of the person to whom the notice (or copy) is addressed cannot be found, then the notice must be published in a newspaper generally circulating in the area and a copy put in a conspicuous place on the subject land.

How sale is to be effected

If the full amount is not paid by the date stipulated in the notice the council may sell the land. The sale must be by public auction. A public auction must be advertised:


(a) on the council's website; and

(b) on at least 2 separate occasions in a newspaper circulating generally throughout the Territory.

If the outstanding rates are paid before the date of the sale, the council must call off the sale. If an auction fails, the council may sell the land by private contract for the best price that it can reasonably obtain. Whether the sale of land is by auction or by private contract (after a public auction fails), the council may execute a conveyance of the land under its common seal. On registration of the conveyance, title to the land vests in the purchaser free and discharged from all mortgages, charges and encumbrances.

Proceeds of sale

Section 176 of the LGA states that once the property is sold, the council must apply the proceeds of the sale in the following order:

(1) payment of costs incurred in the selling of the land;

(2) payment of all liabilities secured on the land (including the liability to the council) in the order of their priority; and

(3) payment to the owner of the land.

If the council fails, after reasonable inquiry, to discover the identity or whereabouts of a person entitled to payment under this section, the council may make the payment to the Public Trustee as unclaimed property. Such a payment vests in the Public Trustee under, and for the purposes of, section 59A of the Public Trustee Act.

Miscellaneous matters concerning rates and charges

Record keeping

Councils must comply with Part 9 of the Information Act and the Records Management Standards for Public Sector Organisations in the NT. Rates and charges records are normally permanent records which must be kept in perpetuity.


Certificate as to rates and charges

Councils may charge a fee for written confirmation of details of a rate assessment.

Notice of transfer

Section 153 of the LGA provides that when a person becomes a ratepayer for an allotment they must advise the CEO of the relevant council and provide their address. Similarly, notice must be given to the CEO if a ratepayer’s postal address changes. Also, a person who ceases to be a ratepayer for an allotment must give notice to the CEO. These notices must be given to the CEO within 28 days of the relevant event occurring. While the notices for becoming, or ceasing to be, a ratepayer are usually provided to council by conveyancers, the responsibility still rests with the ratepayer. Council may prosecute a person for not complying with these requirements. The maximum penalty for each offence is 20 penalty units. The current value of a penalty unit may be found in the Penalty Units Regulations. As at 1 July 2015, the value of a penalty unit was $153, so the maximum penalty at 1 July 2015 would be $3060. It is rare, however, for courts to impose a maximum penalty. A good way to encourage ratepayers to notify council of changes is to print a reminder on rates notices and other documents made available, or sent, to ratepayers. The reminder could advise ratepayers of their obligations and note that it is an offence, mentioning the maximum penalty, if a ratepayer fails to fulfil these obligations.

Refunds

There may be occasion where a council receives a request from a property owner to refund rates already paid. This may be, for instance, where a rates account is in credit, or a payment has been receipted in error. In all cases the request should be given to Council in writing and, prior to approving a refund, it must be established that the requestor is the rightful owner of the funds. All approvals for refunds should be approved by two officers, with at least one approving officer holding the appropriate delegation from Council. For instances where a rates account has a credit balance, or instalments have been paid prior to their due date, any refunded amount should not consequently place the account into debt or arrears. For instances where a payment has been receipted to a rates account in error, such as a previous owner of a property making payment to their “old” rates account for example, the full amount of the reversal of the payment may result in the rates account balance being placed in debt or arrears. Care should be taken to positively identify the claimed payment. The claimant should provide Council with receipt copies or details of the original payment, these should be verified against Council’s own record of the receipt. The current owner of the property


should be advised in writing of the change to the balance of the rates account as soon as practicable. It is recommended that Council have a policy about rate refunds. The policy could provide direction for staff for formal approved treatment of rate refunds.

Privacy and complaints

What information about rates is public

Section 152(4) of the LGA states that a copy of the assessment record must be available for inspection, free of charge, by any member of the public at the council’s public office.

What is confidential

Section 152(5) of the LGA states that the CEO must, at the request of a person to whom an entry in the assessment record relates, suppress the person’s name or address (or both) from the publicly accessible copy of the record.

Who can ask for what

Any member of the public can inspect a copy of an assesssment record (see section 152(4) of the LGA). A person to whom an entry in the assessment record relates can request that the CEO suppress the person’s name or address or both (see section 152(5) of the LGA).

Complaints about rates / Correcting the assessment record

If a ratepayer thinks they have been charged the wrong amount of rates, in effect they are saying that the assessment record is incorrect, the rates declaration has been incorrectly applied, or the rates declaration is not valid. The complaint should be examined to identify what the issue is. First check with the ratepayer that the details in the assessment record are correct. A person who disagrees with what is in the assessment record can apply to the council for a correction to be made. The application should be in writing, state the applicant’s interest in the allotment and the correction that needs to be made (see section 154(3) of the LGA). Application for correction of the assessment record can be made on one or more of the following grounds (see section 154(2) of the LGA):

(a) the entry wrongly classifies an allotment that is non-rateable as rateable land;

(b) the entry should, but does not, classify an allotment as urban farm land;


(c) the entry wrongly records the use of an allotment;

(d) the entry contains some other relevant misclassification or misdescription of an allotment;

(e) the entry wrongly records ownership or occupation of an allotment;

(f) the entry wrongly designates the applicant as principal ratepayer for an allotment;

(g) the entry contains some other relevant error. The CEO (or delegate) may decide the application on behalf of the council if the application is uncontroversial. Generally speaking, if the applicant is not going to be happy with the outcome, it is controversial. Also, the CEO should not unilaterally decide to change something in favour of the applicant unless there could be no question that it is a simple correction and the CEO is not using any discretion to give a benefit to the applicant. Uncontroversial matters would possibly be corrections such as spelling mistakes or an error in transcribing information, such as the valuation, from another document. There is no hard and fast rule which will always apply. Ask yourself if there is a risk or detriment to council, financially, legally or publicly by making this change? If in doubt, check it out! If it is not an “uncontroversial” matter or could even possibly raise issues of a controversy, the application must be considered by the council or a council committee. It is recommended that council have a standing committee to deal with these matters. The committee could meet from time to time as necessary. It is also recommended that council have a policy regarding rates complaints, including the appointment of a committee and timelines for consideration and response to applications. Most councils would delegate the authority to review the issue and make a recommendation to the council, to their finance committee. The application to correct the assessment record must be considered, and a written response provided, as soon as practicable (see section 154(5) of the LGA). The response should include advice to the effect that if the applicant still believes the assessment record is wrong, they may, within 14 days, apply in writing to the CEO for a review of the decision. It should also advise that the application for review must set out in detail the grounds on which the decision should, in the applicant's opinion, be re-considered. It would be a good idea to have an information sheet or pamphlet explaining the review process in full, which can be included with the advice of the decision.

Complainant not satisfied – review process

Section 228 of the LGA provides that if the applicant is not satisfied with the initial decision they may, within 14 days, apply in writing to the CEO for a review of the decision. The application for review must set out in detail the grounds on which the decision should, in the applicant's opinion, be re-considered. Note that the CEO may extend the period for making an application for review if the CEO is satisfied that there are exceptional circumstances justifying the extension.


Such an application must be referred to the administrative review committee. Section 229 of the LGA sets out what the administrative review committee can do and the kind of recommendations it can make to the council. It is good practice not to have any members who made the original decision on the administrative review committee to ensure no conflicts of interest issues arise. After receiving a recommendation from an administrative review committee, the council must make a final decision on the application. Of note, the decision need not be consistent with the administrative review committee's recommendation. Nevertheless, Council would need sound reasons upon which it makes its decision. Section 230(3) of the LGA provides that the CEO must give a “decision notice” to the applicant as soon as practicable after the council makes a final decision on the application. Section 3 of the LGA defines a “decision notice” as a written notice setting out the decision and the reasons for that decision. The decision notice must also include information about how the person may seek a review of the decision by the Civil and Administrative Tribunal. Section 34 of the Northern Territory Civil and Administrative Tribunal Act makes provisions to the effect that the decision notice must contain the decision and information that the person has a right to have the decision reviewed by the Tribunal, and a right to request a statement of reasons for the decision (if they are not part of the decision). An example of appropriate wording to be included along with the reasons for the decision in the decision notice:

You have a right to have this decision reviewed by the Northern Territory Civil and Administrative Appeals Tribunal. If you wish to exercise this right, you must file an application with the Registrar of the Northern Territory Civil and Administrative Appeals Tribunal, together with the appropriate fee, within 28 days after the day on which you have received this notice.

Information about the Northern Territory Civil and Administrative Appeals Tribunal can be found at http://www.ntcat.nt.gov.au or phone 1800 604 622.

http://www.ntcat.nt.gov.au/


Key Deadlines

Key Date Activity

End of January

Conditionally Rateable Land

Section 142(4)(a) of the Local Government Act allows for a council (if the council wishes) to make a submission to the Minister in relation to conditionally rateable land by the end of January. See more information under heading “Conditionally rateable land”.

Between 1 April and 31 July

Adopt municipal, regional or shire plan

Section 24(1) of the Local Government Act states that a council must adopt its municipal, regional or shire plan (or revisions to its municipal, regional or shire plan) between 1 April and 31 July in each year and forward a copy of the plan (or the revised plan) to the Agency by the latter date. See more information under heading “Publication of draft Plan”.

Before a council adopts its budget for a financial year

CEO certification of assessment record

Regulation 24 of the Local Government (Accounting) Regulations provides that before a council adopts its budget for a financial year, the CEO must check all available records to ensure that all rateable land is recorded in the assessment record and certify to the council that, to the best of the CEO's knowledge, information and belief, the assessment record is a comprehensive record of all rateable land within the area. See more information under heading “Certification of CEO”.

On or before 31 July

Declare rates

It is best practice to declare rates before the beginning of the financial year. Section 155(1) of the Local Government Act provides that a council must, on or before 31 July in each year, declare rates (general rates) on allotments throughout the area to raise an amount for general purposes for the financial year. See more information under heading “Rates Declaration”.

Within 21 days after declaring rates

Publish notice of rates declaration

Section 158(1) of the Local Government Act provides that within 21 days after declaring rates, the council must publish notice of the rates on its website and in a newspaper circulating generally in the council’s area.

At least 28 days before the payment of rates or the first instalment of the rates fall due

Rates notice payment dates

Section 159(1) of the Local Government Act states that at least 28 days before the payment of rates (or the first instalment of the rates) falls due, the council must issue an account for the payment of rates (a rates notice) for each allotment. The rates notice must also state the due date for payment of the rates and, if payment by instalment is allowed, the due date for payment of the first instalment. See more information under heading “Rates Notices”.

Appendix 1

XXXXX Regional Council Declaration of Rates and Charges 20xx/xx

Notice is given pursuant to section 158 of the Local Government Act that the following rates and charges were declared by xxxxxx Regional Council (“Council”) at the ordinary council meeting held on xx June 20xx pursuant to Chapter 11 of the Local Government Act (“the Act”) in respect of the financial year ending 30 June 20xx.

A copy of the assessment record is available for inspection, free of charge, at any of the Council's public offices. A person may apply to the Council for the correction of an entry in the assessment record.

Disclaimer: This document is provided as an example only. Councils should make their own enquires and seek their own advice in relation to their rates declarations and public notices. The Territory makes no representation or warranty as to, and accepts no liability for, the accuracy, correctness of any information and materials (including any interpretation of that information) provided by this document. To the extent permitted by law, the Territory accepts no liability whatsoever in relation to the information and materials contained in this document, or the views expressed in the information and materials, or any use of, or reliance on, such information and materials by any person, Council or other entity.

Rates

Pursuant to section 155 of the Act, Council declared

that it intends to raise, for general purposes by way of

rates, the amount of $X,XXX,XXX.00.

Pursuant to section 148 of the Act, the bases of rates

are:

i. differential valuation based charges with

differential minimum charges; and ii. differential fixed charges.

Pursuant to section 149 of the Act, the basis of

assessed value is the unimproved capital value.

1. Example Community Residential

In respect of allotments classed as “Example

Community Residential” in the council assessment

record, a differential fixed charge of $XXX.00 per

allotment.

2. Example Community Commercial


Community Commercial” in the council assessment

record, a differential fixed charge of $XXX.00 per

allotment.

3. Illustration Creek Residential

In respect of allotments classed as “Illustration Creek

Residential” in the council assessment record, a

differential rate of X.XXX% of the assessed value with

the minimum amount payable in the application of this

rate being $X,XXX.00 multiplied by:

i. the number of separate Residential Parts or

Units that are adapted for separate occupation

or use on each allotment (pursuant to section

148(4) of the Act); or

ii. the number 1 (one),

whichever is the greater.

For the purposes of paragraph 3, “Residential Parts or

Units” means a dwelling, house, flat or other

substantially self-contained residential unit or building.

4. Illustration Creek Commercial


Commercial” in the council assessment record, a

differential rate of X.XXXX% of the unimproved capital

value with the minimum amount payable in the

application of this rate being $X,XXX.00 multiplied by:

i. the number of separate parts or units that are

adapted for separate occupation or use on

each allotment (pursuant to section 148(4) of

the Act); or

ii. the number 1 (one),

whichever is the greater.

5. Pastoral leases under the Pastoral Land Act

In respect of allotments of land over which there is a

pastoral lease, as defined in section 3 of the Pastoral

Land Act, a rate of X.XXXX% of the unimproved

capital value with the minimum amount payable in the

application of this rate being $XXX.XX.

6. Mining tenements

In respect of allotments of land which are subject to

mining tenements as defined in the Act, a rate of

X.XX% of the unimproved capital value with the

minimum amount payable in the application of this rate

being $XXX.XX.

Note:

i. Contiguous leases or reasonably adjacent

leases held by the same person will be rated

as if they were a single lease.

ii. If the owner of the mining tenement is also the

owner of the land underlying the mining

tenement and is liable for the rates for the

underlying land tenure, the only rates payable

are either the rates for the mining tenement or

the rates for the underlying land tenure,

whichever is the highest.

A copy of the assessment record is available for inspection, free of charge, at any of the council's public offices. A person may apply to the council for the correction of an entry in the assessment record.

Disclaimer: This document is provided as an example only. Councils should make their own enquires and seek their own advice in relation to their rates declarations and public notices. The Territory makes no representation or warranty as to, and accepts no liability for, the accuracy, correctness of any information and materials (including any interpretation of that information) provided by this document. To the extent permitted by law, the Territory accepts no liability whatsoever in relation to the information and materials contained in this document, or the views expressed in the information and materials, or any use of, or

reliance on, such information and materials by any person, Council or other entity.

Charges

Pursuant to section 157 of the Act, Council declared

the following charges for the purpose of kerbside

garbage collection provided, or which council is willing

and able to provide, and/or access to local rubbish

dumping facilities.

Council intends to raise $XXX,XXX.00 by these

charges.

7. Example Community Residential


Community Residential” in the council assessment

record, where Council is willing and able to provide the

service, a charge of $XXX.00 per annum per allotment.

The service provided is a kerbside collection of the

contents of one 240 litre bin per week and access to

the Council’s waste management facility for the

purpose of depositing waste from the residential

allotment, regardless of whether or not the services

and facility is used.

8. Example Community Commercial


Community Commercial” in the council assessment

record, where Council is not willing and able to provide

the service, a charge of $XXX.00 per annum per

allotment for access to the Council’s waste

management facility for the purpose of depositing

waste from the commercial allotment, regardless of

whether or not the facility is used.

9. Illustration Creek Residential


Residential” in the council assessment record, where

Council is willing and able to provide the service, a

charge of $XXX.00 per annum per allotment.

The service provided is a kerbside collection of the

contents of one 240 litre bin per week and access to

the Council’s waste management facility for the


allotment, regardless of whether or not the services

and facility are used.

10. Illustration Creek Commercial


commercial” in the council assessment record, where

council is not willing and able to provide the service, a

charge of $XXX.00 per annum per allotment for access

to the Council’s waste management facility for the


allotment, regardless of whether or not the facility is

used.

11. Payment

Council resolved that a discount of $XX.00 will be

allowed to any ratepayer who pays the full amount of

rates and charges for the year on or before 31 October

20xx.

Council has resolved that the payment of rates and

charges may be paid by two approximately equal

instalments on the following dates:

i. first instalment due 30 November 20xx; and

ii. second instalment due 31 March 20xx.

Pursuant to section 161(3) of the Act, Council resolved

to relieve all ratepayers from the consequences of

default in payment by instalment, to the extent of those

instalments where the due date has not yet arrived.

Where instalments of rates and charges are not paid

on or before the date on which the instalment is due

and payable:

i. the date on which any future instalment is due

and payable is not affected; and

ii. the penalty for late payment, under item 12

below, shall be calculated only on the amount

of the outstanding instalment (excluding

interest) on a daily basis from the date on

which the missed instalment became due and

payable, until the date payment is made.

12. Interest Rate for late payment

The relevant interest rate for the late payment of rates

and charges is fixed in accordance with section 162 of

the Local Government Act at the rate of XX% per

annum.

Sarina Bloggs

CHIEF EXECUTIVE OFFICER

Appendix 3

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