Northern Territory Councils Push to Set Their Own Mining Rates

Local governments in Australia's Northern Territory are pushing for the power to set their own mining rates, a move they believe is crucial for their financial survival. The Local Government Association of the Northern Territory (LGANT) is advocating for legislative changes to allow councils to determine rates for mining tenements and pastoral leases, mirroring how they set rates for other properties.

Currently, the Northern Territory minister for local government holds the authority to set these rates. LGANT president Peter Pangquee argues that councils should have the autonomy to rate mining companies based on the size of their properties, just as they do for other ratepayers. "We appreciate the mining industry and what they do for the Northern Territory, but what we want is a bit of fairness," he stated.

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We appreciate the mining industry and what they do for the Northern Territory, but what we want is a bit of fairness.

Pangquee highlighted the financial strain on most NT councils, which often have small populations and limited rateable properties, resulting in a smaller revenue base. This makes it difficult for them to fund essential infrastructure upgrades and services. "Currently the mining industry pays $1.6 million right across the Territory to all councils," he said, adding that this amount is disproportionately small given the companies' intake.

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Currently the mining industry pays $1.6 million right across the Territory to all councils.

The Barkly Regional Council Mayor Sid Vashist echoed these concerns, noting that while mining operations in the Barkly region alone are projected to generate $35 billion by 2030, only a fraction of this revenue flows back to the council. Vashist pointed out a stark contrast with Queensland, where a gold mine might pay $130,000 to $250,000 in rates, while similar mines in his region pay only $10,000 to $15,000. "The disparity is huge," he said.

This revenue shortfall leaves councils struggling to maintain critical assets. Vashist estimated that maintaining council assets over 10 years would cost $155 million, but the council would only have $5 million available. Furthermore, damage from vandalism and antisocial behavior adds millions to their repair costs. "I'm not proud about it and we need to change that story, but we don't have the cash to do it," he admitted.

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That's not a lot when you look at the proportion of intake by those companies.

However, the Minerals Council of Australia's executive director of Northern Australia, Cathryn Tilmouth, cautioned against increasing rate payments. She argued that such a move could disincentivize the mining industry from operating in the Northern Territory, despite its significant economic contribution through employment and support for local service and supply industries.

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Under the conditional rating system in the Northern Territory, it's not great for the councils.