SA Labor to introduce bill to force councils to waive rates

Councils would have to waive rates for coronavirus-affected businesses and charities under a Labor plan but local governments fear they can’t afford to do cop the losses either.

Labor leader Peter Malinauskas. Picture: Matt Loxton

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Councils would be forced to provide rates relief to businesses and not-for-profits affected by COVID-19, under legislation to be tabled by the State Opposition today.

Labor leader Peter Malinauskas told The Advertiser local government needed to do more to support SA jobs.

Under the plan, businesses and not-for-profit organisations that have been forced to close by the COVID-19 pandemic will have their council rates waived. Pubs, clubs, restaurants and gyms are some of the businesses that Mr Malinauskas said would most benefit from the policy.

The Bill, that the State Government will be asked to support, would require all councils across South Australia to waive 100 per cent of their rates for the period the business or organisation is forced to close.

Treasurer Rob Lucas last week urged councils to do more to help businesses.

The Local Government Association (LGA) commissioned and released a report earlier this month that highlighted rates relief was one of the best levers to help struggling businesses.

However, only a handful of councils – including Prospect and Wakefield – have moved on rates relief.

Mr Malinauskas said offering council rate relief was a sensible measure, which could help businesses survive and protect as many jobs as possible.

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“Thousands of South Australian business and organisations are doing it very tough right now, and that doesn’t just hurt businesses, it hurts workers too,” he said.

“If we can ensure more businesses survive and more jobs are protected, we will emerge out of this downturn in stronger shape.”

LGA President Sam Telfer told The Advertiser last week that commissioned research had found it was likely that widespread rate relief would only be sustainable for councils if financial assistance was provided by the federal or state governments.

“Councils collect less than 4 per cent of tax, and blanket rates exemptions for thousands of businesses and households will significantly reduce our capacity to deliver services, and result in other ratepayers having to pay more,” Mr Telfer said.

“What councils can do – and are doing – is offer targeted relief to where it’s needed most.”

Mr Malinauskas said the legislation could be the first step in a broader plan for councils to help with the economic recovery.

Last week Mr Lucas told The Advertiser he would like the local government sector to “put more skin in the game” by offering rates relief.