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Kalymnian Brotherhood Darwin wins $22,000-plus rates case brought by the City of Darwin

A multicultural club in Darwin’s northern suburbs has won a rates exemption after successfully defending a claim that because it hosted events unrelated to Greek culture, it was running a commercial operation.

Festival of Agios Panteleimon 2020, held at the Kalymnian Brotherhood Darwin grounds. Picture: Facebook
Festival of Agios Panteleimon 2020, held at the Kalymnian Brotherhood Darwin grounds. Picture: Facebook

A mega multicultural club in Darwin’s northern suburbs has successfully argued it is exempt from paying council rates on the basis it is a registered charity.

The Northern Territory Civil and Administrative Tribunal decision favouring Kalymnian Brother Darwin Inc’s (KBD) defence against the applications brought by City of Darwin represents a $22,977.25 blow to the council’s coffers, the amount in unpaid notices from 2018–22 it was seeking.

The dispute hinged on the interpretation of a controversial section of the Local Government Act 2019, s222(1)(g), which holds that land held by registered charities is exempt from paying council rates provided the land is used for a “non-commercial purpose”.

The council argued that because KBD offered its Marrara hall for events such as the King of the Ring boxing tournament, and hired it out for functions and events hosted by individuals and organisations who did not have ties to the Greek island of Kalymnos, they were using the land for a commercial purpose.

KBD’s defence of the claim was the overwhelming purpose of the land and hall was to provide “a gathering place for the Kalymnian community,” tribunal member Ingrid Meier said in her recent decision.

These included events for major Kalymnian celebrations, such as Greek Easter, and the feast days for Saint Basil and Saint Panteleimonas, as well as community funerals, baptisms and

memorials, and weddings, engagements, and birthday parties for members.

King of the Ring 2015 at the Kalymnian Brotherhood Darwin hall. Picture: Facebook
King of the Ring 2015 at the Kalymnian Brotherhood Darwin hall. Picture: Facebook

It argued there were “costs associated” with the holding of these events, and it was therefore necessary to “raise money to cover those costs”.

Additionally, KBD president Themis Magoulias told the tribunal that in 2019, the incoming committee “inherited” a large debt, requiring fundraising activities to be ramped up to meet the organisation’s $75,000 per annum overheads and pay down the debt.

The City of Darwin countered that “the holding of fundraising activities of a commercial nature on one side, in order to fund non-commercial activities on the other side” is insufficient to make the commercial activities “merely incidental” to KBD’s main purpose of promoting Kalymnian culture.

However, Ms Meier disagreed, ruling KBD was exempt from rating by operation of s222(1)(g).

However, had there been a greater quantum of non-Kalymnian events held at the hall, such as the Highlander Celtic Rock Show and The Umbrellas Festival, both of which were booked but then cancelled, she said she may have formed a different view.

Local governments in the Northern Territory remain concerned the continued operation of s222(1)(g) will deprive them of a source of revenue, more so if the exemption is found to apply to community housing providers.

The NT government is in the process of transitioning much of its social housing stock to community housing providers.

The NT government pays rates on those properties, but at least one community housing provider, Venture Housing, is arguing in a parallel NTCAT case it is exempt from paying rates to the City of Palmerston because it is a registered charity.

That case remains before the tribunal.

Earlier this year, Local Government Minister Chansey Paech sought to broaden the s222(1)(g) exemption, but backed down on the reform after pushback from the local government sector.

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Original URL: https://www.ntnews.com.au/news/northern-territory/kalymnian-brotherhood-darwin-wins-22000plus-rates-case-brought-by-the-city-of-darwin/news-story/e620f5681c1049c39a34effb5f97a12b