MINING operations in Western Australia will avoid a potential double taxation problem with new legislation passed last week.
The WA Government has passed laws to revise the tax status of miscellaneous licences, confirming that these will not attract local government rates.
Miscellaneous licences are generally granted in conjunction with an associated mining or exploration permit, to assist miners to build infrastructure to support the operation.
While land held under miscellaneous licences has long been understood to not be rateable, and no miners with these licences were being taxed in this way, a recent Supreme Court ruling suggested local governments were within their rights to levy rates on these land holdings.
In response, the State Government has moved quickly to amend the Local Government Act 1995 to confirm land under miscellaneous licences will be exempt from council rates.
WA’s local government minister (and acting mines and petroleum minister) Hannah Beazley said the amendments reinforce what governments and mining companies have long understood to be the legislation’s original intent.
“Maintaining the competitiveness of Western Australia’s world-leading mining sector is critical to the state remaining the strongest economy in the nation and the best place to get a quality job,” she said. “These amendments will uphold the status quo, provide certainty to the resources sector and local governments, and ensure jobs throughout regional WA are protected.
“We’ll continue to engage with the resources sector on how it contributes to local communities and works with local governments.”
