WATTLE Range Mayor Peter Gandolfi has backed a Local Government Association South Australia (LGASA) pre-state budget submission calling for an end to State Government cost shifting.
The outgoing leader welcomed the association’s moves to remove requirements making it compulsory for councils to collect the State Government’s Natural Resources Management (NRM) Levy, as well as providing 75pc rate rebates to community housing providers.
Mr Gandolfi said council had long lobbied for amendments to the Natural Resources Management Act to remove the requirement for the local government sector to act as the levy collection agent.
“Quite often people are confused in thinking the NRM Levy is a council levy, but council is required by law to collect this tax on behalf of the State Government,” he said.
“In recent years, council has highlighted on rates notices the NRM Levy is a state tax.”
Mr Gandolfi said hidden administrative costs around non-payment and rebates exerted additional financial pressures on council and ratepayers.
“Councils are billed by the State Government for the total amount its ratepayers are required to pay in NRM levies,” he said.
“Council then collects the tax on behalf of the State Government through its rates notices.
“If a ratepayer fails to pay the NRM levy, the debt lies with council and council is still required to pay the amount owed to the State Government.
“Any non-payments and the cost to collect that debt is something that is borne by council, not the State Government.”
Mr Gandolfi said the association’s bid to remove requirements for councils to provide a 75pc rebate on rates to community housing providers would save ratepayers approximately $90,000 each year.
The former Labor administration oversaw the transfer of almost 200 Housing Trust properties to community housing provider Unity Housing.
State law requires councils to provide community housing properties with a discount on their rates.
“Council has strongly advocated for the removal of the compulsory 75pc rebate for community housing providers,” he said.
“The fact most of these properties are only paying $150 a year in rates is unreasonably low.”We ask the State Government amend legislation to remove this impost and ease the cost of living pressures on our ratepayers.”
Mr Gandolfi also backed a move to freeze the State Government’s Solid Waste Levy at the current levels given the “massive increases” in recent years.
He also criticised the use of the funds, which are meant to be spent on waste programs aimed at improving recycling, with only a small proportion of money being invested into the sector.
