REVIEW OF FEES AND CHARGES
How the West reaches its Best:
- Remove fees and charges from legislation and regulation and allow Local Governments to set fees for their services
Setting appropriate fees and charges is a fundamental Local Government function and should be a careful decision made by the Council.
These fees and charges provide important revenue for Local Governments and cover various services like dog registration, building approvals, and swimming pool entry.
Currently, these fees are determined by legislation or regulation, with an upper limit set by law or by the Local Government itself.
However, fees set by legislation sometimes do not keep pace with the actual costs of providing the service. This can be due to lack of regular updates, indexation, or clear guidelines for setting fees.
As a result, taxpayers may end up subsidising certain activities without input into fee decisions or receiving direct benefits from the services provided.
While cost recovery should be considered when setting fees and charges, Local Governments might choose to subsidise some services to promote activities that benefit the community as a whole.
An independent review should be undertaken to remove fees and charges from legislation and regulation, allowing Local Governments to set these fees for their services. In the absence of an independent review, fees and charges set by State Government regulations, especially planning fees, should achieve cost recovery and be regularly reviewed with input from Local Governments.
RATING EXEMPTIONS
How the West reaches its Best:
- Undertake an independent review of all rate exemptions to ensure equity and fairness among ratepayers in the community
Rating exemptions have a significant impact on Local Government revenue and their ability to provide essential community services. When properties are exempt from rates, the revenue shortfall must be made up by other ratepayers or by cutting back on services. This issue applies to both Australian Government and State level rate exemptions.
One of the most concerning exemptions is for charitable purposes. Originally meant for genuine charities, this exemption has expanded to include commercial activities of not-for-profit organisations. This broad interpretation dilutes the intended purpose of the exemption. For instance, Independent Living Units, which can be more expensive than average homes, often qualify for rate exemptions. This results in Local Governments losing millions in revenue, which then needs to be covered by other ratepayers—many of whom cannot afford such properties themselves.
Other exemptions that pose challenges include:
- Properties leased by the Department of Housing to Charitable Organisations.
- Government Trading Entities.
- Projects under the State Agreement Act.
- State-Owned Unallocated Crown Land.
Addressing these exemptions is crucial to ensuring fair and equitable distribution of rates among all property owners, while still supporting legitimate charitable activities. Clarifying the definition of charity and reviewing these exemptions can help ensure they serve their intended purpose without placing undue financial burden on other ratepayers.
One of the most concerning exemptions is for charitable purposes. Originally meant for genuine charities, this exemption has expanded to include commercial activities of not-for-profit organisations. This broad interpretation dilutes the intended purpose of the exemption. For instance, Independent Living Units, which can be more expensive than average homes, often qualify for rate exemptions. This results in Local Governments losing millions in revenue, which then needs to be covered by other ratepayers—many of whom cannot afford such properties themselves.
Customer Service at the City of Swan
Independent Living, WA
