· Ald Elise Archer successfully called on Council at tonight’s council meeting for a report enabling council to consider not passing on land tax liability to not for profit, sporting and community groups as part of their lease arrangements;

· In past years this was a fair, equitable and affordable arrangement in lieu of paying commercial rent for council owned property;

· Significant land tax increases, imposed by the State Government (not Council), will almost certainly have created an unfair and unforeseen burden on these groups which needs to be urgently reassessed by Council.

Alderman Elise Archer, Chairperson of Finance & Corporate Services Committee (who is also a Liberal candidate for Denison in the State election) called for a report tonight for Council to develop a policy on whether or not Council should pass on its land tax liability to lessees in lease agreements (for Council owned property) with ‘not for profit’ organisations, including sporting and other community groups, in light of the most recent revaluations of council owned properties.

This report will now come back to the Finance Committee (of which Ald Elise Archer is the Chairperson) for consideration and then a decision by full Council.

“There have been significant increases in land tax on properties in the Hobart municipality as a result of recent revaluations. In some cases, I have heard there has been a 400% – 500% increase. Some of Council’s current lease arrangements with some not for profit, sporting, community and other organisations or associations provide for the land tax liability to be passed on to these lessees in lieu of what would be a high commercial rent and/or other fees, and this needs to be looked at in the event we are unintentionally passing on a significant liability”, says Ald Elise Archer.

“In past years, this was a fair and equitable arrangement because the land tax liability was significantly less and more affordable than the commercial rent value, but this most certainly may not now be the case. The most recent significant land tax increases, imposed by the State Government (not Council), will almost certainly have created an unfair and unforeseen burden on some of these groups, which obviously needs to be reassessed by Council”, says Ald Elise Archer.

“Therefore, Council will now reassess, as a matter of urgency, whether this is still a fair and equitable arrangement, particularly in light of our social inclusion policy.

“Underpinning Council’s achievements in the area of social inclusion is the fact Council plays a leading role in facilitating community and cultural development for the City of Hobart by working with groups and organisations to identify needs and undertake appropriate activities.”

“To pass on any significant land tax liability as a result of recent revaluations would now seem to be in direct contrast to Council’s aims and objectives in this area and must logically be reassessed”, says Ald Elise Archer.
Alderman Elise Archer Chairperson, Finance & Corporate Services Committee Hobart City Council (Liberal for Denison)