Councils denied mining super rates

Not only did the miners get a win against the federal government last week, with the weakening of the Resource Super Profits Tax, but they also scored a victory against Queensland local governments.  In the Queensland Court of Appeal, Xstrata and three other mining companies won an appeal regarding $440,000 of rates they were charged by the former Bowen Shire Council (now part of the Whitsunday Regional Council):

Xstrata Coal Qld P/L & Ors v Council of the Shire of Bowen

The council had created special classifications for the miners’ land holdings and applied higher than usual rates to them, arguing that the capacity to pay of the miners should be taken into account.  The Court of Appeal completely rejected this argument, as it is inconsistent with the Local Government Act, which specifies rates are a tax on land (its unimproved value), not landholders, and hence the characteristics of the landholders are irrelevant.  The rates notices with the super high rates were struck down by the Court. Today’s Courier-Mail reports that the case may have implications for other Queensland councils (but details aren’t clear at this stage).

After the events of the last few weeks, governments at all levels across Australia will think twice about messing with the miners.

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