Councils push to set their own rates for mining companies

The Local Government Association of the Northern Territory (LGANT) is lobbying for changes in legislation to enable councils to set their own mining rates within their local government areas. This move aims to improve financial sustainability for councils, which struggle to maintain assets and provide services due to a small population and limited rateable properties.

Currently, the NT minister for local government determines mining rates, rather than allowing councils to set their own rates, as they do for other properties. LGANT's president, Peter Pangquee, emphasized the need for fairness, stating that most councils in the NT have small populations and few rateable properties, leading to a smaller revenue base.

The Industry Capability Network NT report projects significant growth in the mining sector, with the Barkly region alone expected to generate $35 billion by 2030. However, the revenue generated by mining companies does not significantly benefit local councils, with rates paid across the Territory amounting to just $1.6 million. LGANT's president highlighted the disparity between the rates paid by mines in Queensland ($130,000 to $250,000) and those in the NT ($10,000 to $15,000).

Councils in the region face substantial costs for asset maintenance, estimated at $155 million over 10 years, while only having an additional $5 million available for use. Additionally, damage to council buildings from vandalism and antisocial behavior could cost millions to repair. The Minerals Council of Australia's executive director in Northern Australia, Cathryn Tilmouth, argued that raising rate payments would discourage mining in the Territory, which contributes significantly to the economy through employment, service industry contracts, and infrastructure development.

Tilmouth emphasized that mines are relatively self-sustainable in terms of services. NT Minister for Local Government Steve Edgington stated that he would make decisions based on evidence, but had to balance the benefits of mining development against the challenges it poses.