GKI Resort Pty Ltd being sued for $180k by Livingstone Shire Council in outstanding rates claim

Legal action has commenced as a Queensland council tries to recoup a large sum of money it says it is owed. This development is the latest in a series of troubles for the once thriving tourist island off the Queensland coast.

The picturesque Great Keppel Island off the Capricorn Coast of Central Queensland.

A Queensland council has commenced legal action to recoup more than $180,000 in outstanding rates it claims it is owed by GKI (Great Keppel Island) Resort Pty Ltd (Tower Holdings).

Court documents show Livingstone Shire Council is suing the company for $180,349.25 plus costs of $4020.34, in a claim filed with the District Court of Queensland on Thursday, June 29, 2022.

This development is the latest in a series of troubles for the once thriving tourist island off the Central Queensland coast and comes after revelations last month that Australia’s richest woman Gina Rinehart had abandoned plans to purchase the lease for Great Keppel Island resort for redevelopment.

Court documents state that Livingstone Shire Council is, and was at all material times, a body corporate constituted by the Local Government Act 2009 (Qld), and as such is capable of suing in its corporate name.

The documents further state that GKI Resort Pty Ltd was at all times a body corporate constituted by the Corporations Act 2001, and as such is capable of suing and being sued in its corporate name.

The documents also state that GKI Resort Pty Ltd was at all material times a registered lessee of a registered perpetual lease granted for the purposes of tourism.

“The defendant (GKI Resort Pty Ltd) has failed, neglected and/or refused to pay the Debt, which remains due and payable, notwithstanding demand having been made,” the statement of claim says.

“The defendant is now justly and truly indebted to the Plaintiff in the sum of $180,349.25.”

The statement of claim also says Livingstone Shire Council is entitled to claim interest pursuant to the Local Government Regulation 2012, at 8.03 per cent per annum.

Livingstone Shire Council told this publication that as part of its usual recovery process for outstanding commercial rates, ratepayers were given 12 months to settle their accounts before any action was taken.

It said as the case involving GKI Resort Pty Ltd was currently before the courts, the council did not wish to comment any further.

These court proceedings come at a turbulent time for Livingstone Shire Council with it fighting desperately to stop three crucial suburbs - Glenlee, Glendale and Rockyview - from being lost to Rockhampton Regional Council as part of a boundary review.

No defence has yet been filed by GKI Resort Pty Ltd with the District Court of Queensland.

GKI Resort Pty Ltd (Tower Holdings) has been contacted for comment.