Boundary adjustments and Rate Capping - Incongruous Bedfellows?

LG Leader April 2017

Following on from Michael’s article regarding rate capping, it is of interest to note that the Government has formally introduced the Local Government (Boundary Adjustment) Amendment Bill (“the Bill”) in November 2016; and the Bill has recently entered the Committee stage in the Lower House.

Although the Bill has received support from both sides of the House, the Liberal Members made it clear throughout debate that they proposed to introduce an amendment to include rate capping as part of the Bill. The member for Unley, Mr David Pisoni, moved this amendment on 2 March 2017.

It should be noted that this amendment was proposed despite the South Australian Inquiry into Local Government rate capping concluding that rate capping should not be introduced into South Australia.

However, the justification for the introduction of rate capping at this time was that the Bill, if passed, will have an impact on the cost and efficiencies in the running of councils in South Australia. It was also justified on the basis that these amendments will help tackle “the high cost of living through council rates”.

Despite this nexus, the Lower House ultimately determined that it was inappropriate for rate capping to be included in the Bill and thus the Liberal amendment failed.  However, councils should be aware that the Liberal party intends to take rate capping to the next election.

Accordingly, the issue of rate capping is well and truly a ‘live’ issue.

Kelledy Jones Lawyers will continue to keep you updated as the Bill moves through Parliament, and as to any further discussions or attempts by the Liberal party to introduce rate capping.