A WA parliamentary question regarding the financial impact on local governments, specifically the Shire of Denmark, due to the transfer of state-owned housing to not-for-profit organisations and the subsequent loss of rate revenue. The Minister's response details the rates paid and clarifies the government's position.

AnsweredQoN 8120Legislative Assembly
Asked
12 June 2012
Portfolio
Housing

QuestionView source ↗

(1) Is the Minister aware that within the Shire of Denmark the State Government currently pays approximately $75,000 in rates for Department-owned housing?
(2) Is the Minister aware that by transferring ownership of government-built housing to not-for-profits the same dwellings become rate-exempt?
(3) What assistance does the State Government intend to provide to the Shire of Denmark as compensation for this loss of rates?
(4) Across Western Australia, how many State community housing assets have been transferred by the Department of Housing to not-for-profit organisations since the election of the Barnett Government (please list by local government and the rates paid by the State on each property before the handover)?
(5) What is the saving to Government in not having to pay local council rates on the properties?

AnswerView source ↗

Answered
1 August 2012
Responded by
Minister for Housing
Response time
50 days
The Department of Housing advises:
(1) For 2011-12, the department paid $107 244 in rates for department-owned housing in Denmark.
(2) The exemption of Community Housing Organisations from local council rates is at the discretion of the Local Government Area, based on a perceived public benefit provision. While the Housing Authority pays rates, it could be considered that land under the management of the Housing Authority for public housing purposes is also non-rateable.
(3) The State Government does not have a policy of compensating Local Government Authorities where land is non-rateable.
(4-5) As at 30 April 2012, 1216 housing assets have been transferred to not-for-profit organisations.  Below is a summary of rates paid by the department prior to transfer.
Please note the majority of assets transferred were new construction or recent acquisitions and full rates were not payable by the Department of Housing prior to transfer.
# Assets Transferred            Shire / Council                                $ paid
70                                           City of Albany                                 $16 898
81                                           City Of Armadale                            $3688
18                                           City of Bayswater                            Nil
16                                           City Of Belmont                              Nil
5                                             City Of Bunbury                              $3048
12                                           City of Busselton                             $723
44                                           City Of Canning                               $1815
24                                           City of Cockburn                             $5425
22                                           City Of Gosnells                              $6486
9                                             City of Kalgoorlie Boulder              $1080
264                                         City Of Mandurah                            $13 641
90                                           City Of Stirling                                $16 014
44                                           City Of Swan                                   $13 417
171                                         City Of Wanneroo                            $31 538
14                                           Geraldton-Greenough City Council$3684
6                                             Rockingham City Council                $890
56                                           Shire of Broome                               Nil
113                                         Shire Of Capel                                  $3122
9                                             Shire Of Denmark                            Nil
12                                           Shire of Harvey                                $3983
6                                             Shire of Irwin                                   $432
1                                             Shire Of Kalamunda                        $2484
22                                           Shire of Murray                                $3353
10                                           Shire Of Narrogin                             $3700
15                                           Town of Bassendean                        Nil
82                                           Town of Kwinana                            $23 058
1216                                       Total                                                 $15 8481
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