Redland council’s High Court bid to claw back $10m waterfront levy

A bayside council has lodged documents outlining the basis of a High Court bid to claw back millions of dollars awarded to a group of waterfront property owners.

Landowners living on canals in Redland were forced to pay a levy which is now the subject of a High Court challenge by the local council. Picture: Realestate.com

A bayside council has lodged documents outlining the basis of a High Court bid to claw back millions of dollars awarded to a group of waterfront property owners.

Redland City Council will argue that a Supreme Court judge erred in a 2021 finding which forced the council to repay about $10 million collected in a levy and interest from waterfront property owners.

Documents lodged with the High Court in June, show the council will argue that it should not have to repay the money as it was collected and spent to the benefit of the waterfront ratepayers.

One of the country’s leading barristers, Jonathan Horton, is leading the challenge for Redland City Council.

The documents also show the council will claim the funds were spent for the purpose for which they were collected, which was to maintain canals, revetment walls and lakes.

The council will also argue that the special rates and charges tax was imposed on ratepayers who “specially benefited” from the services and without the levy there could have been an unjust burden on a wider group of ratepayers.

The case is against ratepayers John Michael Kozic, Simon John Akero, Sarah Akero, and Neil Robert Collier who successfully claimed in 2021 that the council had collected the tax, also referred to as special rates or charges, without proper authority and should return the funds.

The council’s argument, outlined in documents lodged on June 30, revolves around the legitimacy of the taxes collected and the services provided in return.

The council was granted the right to appeal the 2021 Supreme Court decision in March.

It will be the council’s last-ditch attempt to overturn the repayment order and a subsequent Appeals Court hearing in August 2022.

Redland City Council employed top Queensland barrister Jonathan Horton to prosecute the High Court challenge after the landmark Supreme Court class action.

Mr Horton said the matter was listed for hearing on September 13 and 14.

Sovereign Waters Lake and residents Simon and Sarah Akero who successfully challenged the levy in the Supreme Court and on appeal.

Shine Lawyers, which conducted the 2021 class action on behalf of 1055 members, has successfully argued that $7,782,556.82 was levied between July 2011 and July 2017, and claimed that $3,791,536.80 in interest remained owed.

Residents living in the ritzy canal estates launched their action after banding together to challenge being charged about $750 a year by the council, which said it used the funds to maintain canal walls in the exclusive Raby Bay, Aquatic Paradise and Sovereign Waters estates.

Ratepayers from Raby Bay and other waterfront estates filed the claim against Redland council in October 2018 after the council advised that the canal maintenance levy was “invalid”.

The council sent 1650 ratepayers a refund after ceasing the levy in 2017.

Wellington Point ratepayer Simon Akero, who has lived on the lake at Sovereign Waters for more than 20 years, said for the council to win the High Court challenge, it had to successfully argue that ratepayers had received benefits and value from revenue collected from the waterfront fees and charges.