“Fairness issue”: Why Hobart Airport could pay millions
Hobart Airport could be forced to cough up millions in unpaid rates after a long-running dispute with the local council. HOW MUCH IS OWED. >>
Tasmania
Don't miss out on the headlines from Tasmania. Followed categories will be added to My News.
It’s been revealed exactly how much Clarence Council hopes to receive from Hobart Airport, after a long-running dispute around rates – as the High Court rules there are grounds for the case to be heard.
The airport is on Commonwealth land, meaning it hasn’t been required to pay rates or state land tax.
The sum in question has been revealed to have been calculated at $4.02m as of June 2021
In 2019, the Federal Court ruled in favour of Hobart Airport, that it not be required to pay up, but the council appealed the decision in 2020 and the Full Court of the Federal Court allowed it to be heard.
That decision was then appealed by Hobart Airport to the High Court, which failed on March nine this year.
“We’re pleased with the decision by the High Court and now that the jurisdictional arguments have been resolved we look forward to the Federal Court concluding its consideration of the matter,” Clarence mayor Doug Chipman said.
The decision means an outcome is closer, with the dispute to be heard at a later date.
“This is a dispute about calculation of a rates equivalent amount and the areas of the airport that are subject to rate equivalence payment,” Mr Chipman said.
“Council’s clear view is that commercial activities undertaken on commonwealth land are rateable in accordance with the national competition policy principles and the terms of the lease between the Australian Government and the airport operator.”
The dispute over whether the airport should pay is something also being dealt with in the state’s north, with the Northern Midlands Council locked in the same debate with Launceston Airport.
Mr Chipman said it was a matter of fairness.
“Council is of the view that this is an equity and fairness issue and that the airport should be paying their fair share of rates consistent with competition policy requirements and the terms of the lease,” Mr Chipman said.
He said the rates would go a long way in the community.
“At 30 June 2021 that equated to $4.02 million which, if paid, could be invested back into the community in services and infrastructure for the benefit of all,” Mr Chipman said.
Hobart Airport CEO Norris Carter said the Airport was awaiting the decision of the Federal Court.
“Hobart Airport values its relationship with the Council and the broader community,” Mr Carter said.
“We are committed to continuing to make a significant contribution to our local community and that includes paying our fair share to Council.
“Obviously this matter is still before the Court, but we will work through the implications of whatever the Court decides and get on with the job of connecting communities and helping to build a strong future for Tasmania.”
More Coverage
‘Ute tax’ fears reignited over new car pollution cap
The Coalition has raised concerns new car pollution caps could drive up the cost of family and tradie-friendly SUVs and utes ahead of the Prime Minister’s crunch meetings with Asian leaders.
The factors behind steep decline in Tassie apprentice numbers
In the first three months of this year, the number of apprentices in training in Tasmania fell sharply compared to the same three-month period in 2023.