Shire of Mt Magnet CEO believes council will be left bankrupt if State Government Bill passes unchecked

A Mid West shire boss fears new laws to block local governments from charging rates on certain mining land will push them to the point of bankruptcy.

With six sitting days left, an amendment to the Local Government Act is before the Upper House, which would stop councils from slugging explorers and miners with rates charges on miscellaneous licences.

The State Government’s move in August to amend the Act in order to override a Supreme Court decision in July that miscellaneous licences could be charged for rates angered local councils, but provided a win for explorers.

The saga stems from a spat between the Shire of Mt Magnet and explorer Atlantic Vanadium in 2023, when the Mid West council started charging rates on several “miscellaneous licences” covering the Windimurra project.

Shire of Mt Magnet CEO Tralee Cable said the Supreme Court found these miscellaneous licences had been rateable since 1995 and they obtained ministerial approval to do so in 2022.

She fears the changes to the law will financially ruin the council, arguing there was scope for retrospective paybacks and for mining companies to use “unrateable” miscellaneous licences to blanket “rateable” land.

“If mining companies had been paying those rates for 30 years like they were supposed to, local governments in regions wouldn’t be in the state that they’re in right now,” Ms Cable said.

“It’s effectively the last nail in the coffin for us . . . my rate book is roughly $3 million, roughly $2.7 million of that is mining tenements. So that’s where I say we will lose $2.7 million annually.

“Because the amendment Bill says now that no land is rateable when in the hands of a miscellaneous licence holder. So if you hold a miscellaneous licence, you don’t have to pay rates anymore.

“So it is not a stretch to say that these are bankrupting tactics effectively.”

Ms Cable stressed the council was not anti-mining, but argued the economic benefits to the local community was a drip-feed compared to the wealth it generated.

She said a possible best-case scenario under a new system was that they would have pay back $300,000. The worst-case scenario puts that figure into the millions.

“That $300,000 alone is three years of no street lights for the community, or five years of no rubbish bin removal or two years of absolutely no swimming pool or three years of no youth diversion . . . or 12 months of none of those things all together,” Ms Cable said.

Local Government Minister Hannah Beazley said miscellaneous licences were taken out to install infrastructure like roads, pipelines and worker accommodation for mine sites — built and maintained by the company, not the local government.

“For decades, all parties agreed on the meaning of the law and its application that land held under miscellaneous licences was not rateable, and the amendments to the Act will restore this long-held understanding,” she said.

“Because rates have not traditionally been charged by local councils on land held under miscellaneous licences, the financial impact of this Bill, if it passes, is expected to be minimal.

“Local governments are not being financially disadvantaged by the proposed change to the legislation since the land has only been rateable since the Supreme Court decision in July. This land was never intended as a revenue stream for local governments.”

Ms Beazley said land covered by other mining tenements, which might co-exist with miscellaneous licences, will “remain rateable”.

“This ensures local governments will continue to receive this source of rates revenue,” she said.

Ms Cable hoped the opposition parties would seriously investigate and check the amended Bill and “realise this is actually something that will destroy regional Western Australia”.

Nationals Geraldton MLA and shadow local government minister Kirrilee Warr said the State Government was attempting to “ram through a Bill which aims to force local governments to pay back funds lawfully received under the current rating system”.

She said the Government was blocking amendments that would allow councils to apply for funding through the Royalties for Regions Country Local Government Fund to ensure they were not left out of pocket.

“The amount to be paid back if this Bill is passed would no doubt have an impact on the services certain local governments can deliver,” Ms Warr said.

She said she intended to work with her Upper House colleagues to amend the Bill.

It is unclear whether the Bill will progress to a vote in the Upper House before the end of the sitting year on December 11.