The City of Bunbury may soon face a further decrease in rates income, with three organisations now seeking rates exemptions for properties in the region.
Relationships Australia, Accordwest, and South Metropolitan Youth Link have applied for rates exemptions under Section 6.26 (g) of the Local Government Act 1995.
An internal assessment signified they were eligible for rates exemptions.
Relationships Australia applied for a rates exemption for its Molloy Street premises.
South Metropolitan Youth Link submitted an application for its building on Bourke Street.
Accordwest put forward two buildings for rates exemptions, one in Ecclestone Street and the other in Rendell Elbow.
The application, covering four Bunbury properties, would see the city face a reduction of $15,241 in rates income per annum.
If approved, the applications would come into effect on July 1, 2019.
“Organisations that meet the criteria are entitled to be rate exempt, there’s no question about that, unless the legislation has changed,” City of Bunbury Mayor Gary Brennan said.
“The buildings can be privately owned, but if they’re being used for not-for-profit purposes, which meet the criteria, then they’re rate exempt.”
Mr Brennan said the Local Government Act’s guidelines for rates exemptions might change in the future.
“Based on the reading I have done so far, the Local Government Act review has indicated that that’s an area that is currently being closely examined,” he said.
“The areas that are of interest are the retirement homes where people still use community facilities including libraries, sports centres, parks etc.
“There’s an argument there, saying: ‘There should be a contribution towards the up-keep/maintenance of those places, and the provision of the services of those places’.
“On the other hand, if they fit the criteria of a not-for-profit then they can’t be rated.
“I think that’s the dilemma the review is looking at.”
Last month, an Access Housing application – covering 79 properties – saw the city lose $102,949 in rates income per year.
Mr Brennan described it as a “lost opportunity for the city to have that income”.
“However, it is what it is. So, we’ll have to adjust our budget accordingly.
“The last application made for a reduction of around $100,000.
“So, we’ve increased our rates revenue by the same amount through re-evaluations and buildings being developed within our city.”
Council was expected to vote on the matter at its meeting on Tuesday, November 27.
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