Rates relief ahead for industrial businesses

Published on 12 March 2021

Council will look to ease the rates burden on industrial properties in the next financial year as planning for the 2021/22 budget continues.

Industrial land value rose by around 55 per cent under the last round of valuations undertaken by the Valuer General, which resulted in a large rates increase for industrial businesses.

The spike prompted Mayor Darriea Turley AM to convene a meeting with the Valuer General in September 2020, however data presented by the Valuer General’s Office showed that land valuations were in line with the going rate for industrial land in Broken Hill.

Council's Acting General Manager, Jay Nankivell, said Council would look to modify its rates structure to ensure industrial landholders are not paying a disproportionate amount of rates.

"Rates are set according to land value and land value is determined by market prices - and at the moment industrial land in Broken Hill is selling at an extremely high price because it is so scarce," said Mr Nankivell.

"Industrial landholders raised concerns with us last year around the jump in their rates, but unfortunately Council can't change its rates once they are set for the financial year.

"However, with a new financial year on the horizon, we can now look to modify our rates structure and create a special rating subdivision specifically for industrial land to help better spread the rates across industrial, residential, commercial, and mining."

Chair of Council’s ‘Our Economy’ Key Direction Working Group, Cr Branko Licul, said rates would be one of many topics to be considered by Councillors in the lead up to the budget.

“Making industrial rates more manageable will definitely be a priority, but there are a range of other factors to be considered when discussing the budget,” said Cr Licul.

“We’ll sit down with Council’s Executive in the coming weeks and look closely at things such as our ongoing operating costs, major projects, the continual renewal of Council’s ageing infrastructure, and our plant and fleet.”

A draft budget will go before the Council in April, and will then be made publicly available for feedback online and via public engagement sessions.