WA Supreme Court Ruling for Mining Sector Raises Rate Concerns
The Shire of Mount Magnet has won a landmark appeal, changing how local governments can charge rates on occupied crown land.
The WA Supreme Court upheld the Shire’s right to rate land held under Miscellaneous Licences, overturning 40 years of legal understanding.
This change may significantly impact mining operations across Western Australia by increasing costs and introducing rate uncertainty.
Forty-Year Precedent Overturned
For decades, local councils were unable to charge rates on Miscellaneous Licences used by mining companies for infrastructure purposes.
These licences often cover roads, accommodation, or utilities and sometimes overlap with rated mining or exploration leases.
The Supreme Court’s decision now allows councils to rate this land, creating concern within the mining sector.
Industry Warns of Major Financial Impacts
The Association of Mining and Exploration Companies (AMEC) has expressed strong concerns about the potential costs of this ruling.
“If implemented across WA, it is conservatively estimated this legal re-interpretation will cost the mining and exploration sector over $50m per annum,” AMEC chief executive Warren Pearce said.
“And with Local Governments having the ability to seek rates back 5 years, the resources sector could be facing an extraordinary $250m additional rate bill this year.
“This decision by the Supreme Court to recast miscellaneous licences as an area that can be rated will badly hurt the resources sector in WA.
“This is completely unjustified.
“We are asking the WA Government to immediately step in and urgently legislate to preserve the longstanding principal that miscellaneous licences are not, and should not, be rated.
“This was never the intention of the Parliament, and government must act to preserve the status quo.”
CME Urges Government to Step In
The WA Chamber of Minerals and Energy (WA CME) is also calling for urgent legislative review following the court’s decision.
“Not only are WA resources projects contending with lengthy assessment processes, rising energy bills and subdued commodity prices — they are now facing further cost uncertainties as a result of this decision,” WA CME chief executive Rebecca Tomkinson said.
“The potential ramifications of this [WA] Supreme Court decision carry significant financial implications for our sector.
“[WA] CME believes an urgent legislative review is necessary to ensure the ruling complies with both the letter and the spirit of the Local Government Act.”
Tomkinson highlighted another key issue: the potential for double rating.
“This decision potentially opens the door to local governments being able to charge rates on the same land twice, an outcome that would be clearly unfair,” she said.
Broader Pressure on the WA Resources Sector
The ruling comes at a time when government officials are already warning councils against targeting mining operations.
Earlier this year, WA Local Government Minister Hannah Beazley blocked the Shire of Coolgardie from doubling rates on mining land.
She cautioned against using the mining industry as a “cash cow” for council revenue.
WA CME says the mining sector already contributes about a third of the state’s general revenue.
In FY24, resource companies spent nearly $90 billion in WA, including contributions to over 100 local councils.
“In a submission to the Federal Parliament’s Inquiry into Local Government Sustainability last year, [WA] CME raised concerns about unsustainable local government funding models.
“This is the latest example of councils targeting the resources sector in an attempt to balance their budgets,” Ms Tomkinson said.
Sector Seeks Urgent Legislative Clarity
The Supreme Court’s ruling has created uncertainty for mining companies holding miscellaneous licences across WA.
Industry bodies are calling on the WA Government to act quickly to preserve the original intent of the Local Government Act.
Without intervention, this decision could place further financial strain on a sector already managing complex operating conditions.