Councils face prospect of rates refund amid ‘confusion’ over charity status

Councils could be ordered to cough up big money to Tasmanian charities incorrectly charged general rates.

TasCOSS CEO Kym Goodes. Picture: LUKE BOWDEN

COUNCILS could be ordered to cough up big money to Tasmanian charities incorrectly charged general rates, with the peak community sector body warning exemptions have been interpreted and applied differently across the state’s 29 local government areas.

The Tasmanian Council of Social Service wrote to member organisations on Tuesday night acknowledging “confusion” over the provision of the Local Government Act that stated land owned and occupied exclusively for charitable purposes was exempt from general rates.

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Chief executive Kym Goodes said discussions with a sample of TasCOSS member organisations had shown there may have been inconsistencies in the application of this exemption across the state’s 29 councils.

“Due to a recent court ruling, we have sought clarification on the definition of ‘charitable purposes’ and changes to the way rate exemptions were applied by councils after the separation of water rates from the general/council rates,” Ms Goodes’ letter said. “We are currently awaiting clarification from the Minister for Local Government’s office.”

Members who had applied for an exemption but been hit with a rates bill were encouraged to contact TasCOSS. Other groups were encouraged to apply now if they had not previously.

The Supreme Court last year ordered that the Hobart, Clarence, Kingborough and Meander Valley councils repay money paid in rates by the owners of not-for-profit retirement villages.

Local Government Association of Tasmania chief executive Katrena Stephenson said on Tuesday night that some councils had joined to appeal this decision in the High Court.

“In legally testing these provisions it is not councils’ intent to rate on genuinely charitable use — the focus has been to ensure equity for ratepayers that is not blurred by ownership rather than purpose and use,” Dr Stephenson said.

“If an organisation believes their property should be exempt from rates because it is owned and occupied exclusively for charitable purposes they must apply to their council for the rates exemption. A council has no other way of knowing this is the situation.”

She said charities should bear in mind that rating policies, released publicly, could change over time in response to legal decisions.

Hundreds of charitable organisations own properties throughout Tasmania.

Local Government Minister Peter Gutwein was contacted for comment.