Local Government (Rates and Charges Remissions) Regulations 2024

These regulations set definitions and numeric parameters that give practical effect to the remission power in section 4 of the Local Government (Rates and Charges Remissions) Act 1991 (the Act). They do three discrete mechanical things.

First, they prescribe who counts as an eligible pensioner for the purposes of the Act by cross‑referencing Commonwealth instruments and specific categories (regulation 4). That list includes holders of a current pensioner concession card (including a concession card temporarily inoperative because the holder is temporarily out of Australia), holders of a current health care card, totally and permanently incapacitated persons as defined in specified Commonwealth veterans legislation, and war widows and war widowers defined by reference to the Veterans’ Entitlements Act 1986 and the Military Rehabilitation and Compensation Act 2004 (reg 4(1)-(2)).

Second, they fix the annual maximum remission per area of land and how that maximum is to be updated each year by an indexed formula tied to the Hobart Consumer Price Index (CPI) (regulation 5). The regulation defines the CPI source and March quarter timing (reg 5(1)-(2)), prescribes the mathematical linkage between the previous year’s maximum and the new maximum (definitions of A, B, C and D in reg 5(2)), provides a non‑decrease rule if the formula would produce a lower figure than the previous year (reg 5(3)), and specifies the 2024-25 maxima: $379.41 for properties whose owner or occupier is a customer under the Water and Sewerage Industry Act 2008 and $558.50 for properties that are not such customers (reg 5(4)). It also prescribes rounding rules for fractions of cents and for converting to whole dollars (reg 5(5)-(6)).

Third, they prescribe certain institutions for the purposes of section 4(3) of the Act (regulation 6). The list comprises residential aged‑care facilities as defined in s 41‑3 of the Aged Care Act 1997, hospitals providing nursing‑home‑type care as defined in s 3 of the Health Insurance Act 1973, and facilities providing psychiatric or psychological care to resident patients (reg 6).

Operationally, the regulations commence on 26 November 2024 (reg 2), are cited as the Local Government (Rates and Charges Remissions) Regulations 2024 (reg 1) and are administered by the Department of Treasury and Finance (notice information at end of instrument). They do not themselves create application processes, enforcement mechanisms or penalty provisions; instead they provide definitions, caps, and indexing mechanics that municipalities must apply under the Act.

The regulations revolve around four core concepts: eligible pensioner, maximum remission, prescribed institutions, and the CPI indexing mechanism.

Eligible pensioner (reg 4). The instrument defines eligible pensioner by reference to several Commonwealth entitlements. It creates six discrete categories that qualify as eligible pensioners for the Act (reg 4(2)(a)-(f)): current pensioner concession card holders (including concession cards temporarily inoperative because the person is temporarily out of Australia), current health care card holders, totally and permanently incapacitated persons as defined in specified veterans’ law provisions, war widows and war widowers as defined in specified Commonwealth Acts. The regulation also defines the narrower terms used in that definition (health care card, pensioner concession card, totally and permanently incapacitated person, war widow, war widower) and anchors them to specific Commonwealth Acts and sections (reg 4(1)).

Maximum remission (reg 5). The instrument establishes an annual per‑parcel cap on the amount a municipality may remit in respect of rates and charges, and it prescribes an indexing formula to update that cap each financial year. The variables in the formula are: A (the maximum for the year), B (the previous year’s maximum, before rounding), C (the Hobart CPI figure for the March quarter of the previous financial year), and D (the Hobart CPI figure for the March quarter immediately preceding the quarter used for C) (reg 5(2)). The cap for 2024-25 is numerically set, with two different figures depending on whether the property’s owner or occupier is a water industry customer (reg 5(4)). The instrument also prevents the cap from decreasing year to year by stipulating that if the formula yields an A that is less than the previous year’s maximum, the cap remains equal to the previous year’s maximum (reg 5(3)). Rounding rules are spelled out for fractional cents and for converting amounts to whole dollars (reg 5(5)-(6)).

Prescribed institutions (reg 6). The regulations prescribe three categories of institutions for the purposes of the Act’s relevant provision: residential aged‑care facilities (as per Aged Care Act s 41‑3), hospitals providing nursing‑home‑type care (per Health Insurance Act s 3), and facilities providing psychiatric or psychological care to resident patients (reg 6). These categories will operate where the Act differentiates treatment for land occupied by such institutions (the instrument does not itself detail the Act’s differentiation).

CPI figure and timing (reg 5(1)). The CPI figure used is the Consumer Price Index (All Groups) Number for Hobart published by the Australian Statistician under the Census and Statistics Act 1905. The reference quarter for CPI is the March quarter, and the relevant quarters are the March quarter in the financial year immediately preceding the year in which the cap applies and the March quarter immediately prior to that (reg 5(1)-(2)).

These regulations allocate definitional thresholds and numeric caps that create decision pathways and budgetary outcomes for three groups in particular: municipalities (councils), owners or occupiers of land (ratepayers), and certain institutional operators. Ancillary effects touch on Commonwealth agencies and the Australian Bureau of Statistics as providers of authoritative data.

Municipalities (decision‑makers and payers of remitted amounts). The regulations govern what municipalities may remit under the Act by setting the per‑parcel maximum remission and the indexing procedure (reg 5). Practically, municipalities decide whether to grant remissions within the statutory cap for each parcel of land. If a municipality grants a remission it foregoes part or all of the rates and charges revenue it would otherwise collect; the financial consequence is a local government budgeting outcome. The instrument does not set administrative processes, so municipalities must rely on the Act and their own procedures to implement eligibility assessments and record remissions.

Owners and occupiers of land (who may benefit). Eligible pensioners as defined in the regulations (reg 4) are the primary persons the rules are designed to benefit when the Act is exercised. That includes holders of current pensioner concession cards (and concession cards temporarily inoperative because the holder is temporarily out of Australia), current health care card holders, totally and permanently incapacitated persons as defined in veterans’ legislation, and war widows and war widowers (reg 4(2)). The regulations also distinguish between parcels that are water industry customers and those that are not; for 2024-25 that distinction yields different monetary caps per parcel ($379.41 for customers; $558.50 for non‑customers) (reg 5(4)). Therefore an owner or occupier’s status as a water customer under the Water and Sewerage Industry Act 2008 will affect the numeric ceiling of any remission available.

Prescribed institutions (institutional operators and residents). Where the Act treats land occupied by prescribed institutions differently, the regulations list what classes of institutions qualify (reg 6). The categories cover residential aged‑care facilities (Aged Care Act s 41‑3), hospitals providing nursing‑home‑type care (Health Insurance Act s 3), and psychiatric/psychological care facilities for residents (reg 6). Operators and the properties they occupy will be affected if the Act’s institutional provisions interact with remissions.

Commonwealth agencies and ABS (data and definitional inputs). The definitions for eligible pensioner rely on Commonwealth Acts (Social Security Act 1991, Veterans’ Entitlements Act 1986, Military Rehabilitation and Compensation Act 2004), so Commonwealth determinations (for example, the issuance and status of concession and health care cards) are inputs to local government action (reg 4). The CPI figures used to index the maximum remission are taken from the Australian Statistician (Census and Statistics Act 1905), which means municipal calculations rely on ABS publication timetables and locality (Hobart) series (reg 5(1)-(2)).

The regulations allocate definitional duties and numeric constraints rather than creating new discretionary powers or rights. They require municipal actors and others to use specific definitions and numeric procedures when applying the Act.

Duties on municipalities (reg 5). Municipalities must not remit more than the annual maximum amount A in respect of rates and charges payable for any one area of land. The maximum A is determined each financial year by applying the formula set out in regulation 5(2) (definitions of A, B, C, D), unless subregulation 3 applies to prevent a decrease (reg 5(2)-(3)). For the 2024-25 financial year the machinery duty is primarily to apply the numeric caps specified in reg 5(4) and to use the rounding rules set out in reg 5(5)-(6) when expressing monetary amounts.

Duty to use ABS Hobart CPI figures (reg 5). Municipalities must use the Consumer Price Index (All Groups) Number for Hobart published by the Australian Statistician under the authority of the Census and Statistics Act 1905 when calculating the CPI inputs (C and D) for the formula (reg 5(1)-(2)). The timing of the relevant data points is the March quarter in the financial year immediately preceding the year in which the maximum applies, and the March quarter immediately preceding that (reg 5(1)-(2)).

Duty to apply rounding rules (reg 5(5)-(6)). The regulations set a two‑stage rounding process: fractional cents to nearest cent (increase if 0.5 of a cent or more; otherwise decrease) (reg 5(5)); then cents to nearest dollar (increase to next whole dollar if cents are 50 or more; otherwise decrease) (reg 5(6)). These are procedural duties that ensure consistency in the figures municipalities lodge and rely upon.

Duty to determine eligible pensioner status (reg 4). Entities granting remissions must determine whether an applicant or a person associated with a parcel of land falls within any of the eligible pensioner categories in reg 4(2). That requires assessing the currency and, for pensioner concession cards, the operative status of cards in relation to a temporary absence (reg 4(2)(b)). The regulation provides the definitional criteria; the practical duty to check documentation and to treat statuses as qualifying lies with the municipal decision‑maker.

Rights created by the regulations. The regulations do not itself confer an enforceable private right to a remission , that right, if any, arises under the Act. What these regulations do is define who is an eligible pensioner (so that the Act’s remission provisions can be applied) and the maximum amount that may be remitted in any financial year (a statutory ceiling). For persons who satisfy the definitions, the effect is to establish eligibility criteria used when a municipality exercises remission powers. The regulations also entitle municipalities to use an indexing formula for subsequent years (subject to the non‑decrease rule).

The regulations contain no express offences, penalties or enforcement mechanisms. They are prescriptive and administrative in nature, supplying definitions and a numeric ceiling; they do not themselves create criminal or civil penalty regimes.

Absence of penalties in the instrument. Nowhere in the text of these regulations are sanctions, fines, or enforcement processes specified. The instrument instead operates by reference to the Act , for example, by stating that certain definitions are "for the purposes of the Act" (reg 3 and reg 4 opening phrase). Any enforcement or penalties relating to breaches of remission rules, fraudulent claims for remissions, or municipal non‑compliance with statutory duties must therefore come from the Act or other statutes or from local government internal governance and audit arrangements, none of which are detailed in these regulations.

Operational compliance and administrative oversight. Although the regulations do not establish statutory penalties, they create administrative duties that will be audited in practice. For example, municipalities must correctly compute the maximum remission per parcel using the CPI figures and rounding rules in reg 5, and must correctly identify eligible pensioners under reg 4. Failure to do so could expose a municipality to internal audit findings, ministerial or departmental queries (the regulations are administered by the Department of Treasury and Finance), or legal challenge under the Act where procedural or substantive errors in applying the Act are alleged. The instrument itself does not set out appeal rights or review mechanisms.

Reliance on third‑party data and determinations. The regulations require use of ABS Hobart CPI figures (reg 5(1)) and rely on Commonwealth determinations for card issuance and veterans’ statuses (reg 4(1)). Municipalities and other decision‑makers are therefore expected to use authoritative external data and records when implementing remissions. Disputes over the correct data point (for example, which ABS series to use) or the interpretation of Commonwealth entitlements would be resolved by reference to those external sources and to the Act, rather than by the instrument itself.

Recordkeeping as a compliance control. Given the regulations specify numeric ceilings and procedural rounding, a practical enforcement mechanism will be the municipality’s recordkeeping and audit trail: retention of evidence that a person met an eligible pensioner definition, records of the ABS figures used and the calculation of A from B, C and D, and evidence of which cap ($379.41 or $558.50 for 2024-25) applied to each parcel. The instrument imposes no minimum retention periods or specific document requirements; those obligations will arise from the Act, municipal law, or internal policy.

The regulations are highly dependent on, and cross‑referential to, several Commonwealth Acts and the principal local Act. Their operation turns on those external statutory instruments and published data sources.

Local Government (Rates and Charges Remissions) Act 1991 (the Act). The regulations repeatedly state that their definitions and numerical caps are "for the purposes of the Act" (reg 3; reg 4 opening phrases; reg 5 opening phrases; reg 6 opening phrase). The regulations do not themselves create the remission power; instead they supply the statutory definitions and caps necessary for municipalities to exercise the remission power that exists under the Act, specifically the parts of the Act referenced in the regulations as s 4(2) and s 4(3). Any substantive rights, obligations, or processes in the Act (for example, application procedures or appeal rights) remain governed by the Act, not these regulations.

Social Security Act 1991 (Commonwealth). The definitions of "health care card" and "pensioner concession card" depend on the Social Security Act 1991 (reg 4(1): health care card "within the meaning of" the Social Security Act; pensioner concession card "issued under" the Social Security Act). This creates an interjurisdictional link: eligibility for remission under the Act depends on recognition under federal social security law.

Veterans' Entitlements Act 1986 and Military Rehabilitation and Compensation Act 2004 (Commonwealth). The regulations draw upon these Acts to define "pensioner concession card" (as a fringe benefit under the Veterans' Entitlements Act), "totally and permanently incapacitated person" (s 24 of Veterans' Entitlements Act; s 199 of the Military Rehabilitation and Compensation Act), and the meanings of "war widow"/"war widower" (reg 4(1)). Eligibility categories therefore incorporate federal veterans’ entitlements and definitions.

Aged Care Act 1997 and Health Insurance Act 1973 (Commonwealth). The definition of prescribed institutions relies on Commonwealth definitions of "residential care" (Aged Care Act s 41‑3) and "nursing‑home type patients" (Health Insurance Act s 3). Whether a facility qualifies as a prescribed institution under reg 6 requires application of those Commonwealth definitions.

Water and Sewerage Industry Act 2008 (Tasmania). The regulations treat properties differently depending on whether the owner or occupier is a customer "within the meaning of the Water and Sewerage Industry Act 2008" (reg 5(4)). That Act thus plays a role in determining which of the two 2024-25 caps applies to a parcel of land.

This instrument is the Local Government (Rates and Charges Remissions) Regulations 2024. The regulations were notified in the Gazette on 16 October 2024 and commence on 26 November 2024 (reg 2; notice at end of instrument). The instrument contains no internal amendment schedule and records no prior versions within the text provided.

Creation and commencement. Reg 1 provides the short title for citation: Local Government (Rates and Charges Remissions) Regulations 2024. Reg 2 dates the operational commencement as 26 November 2024. The usual legal consequence is that the instrument takes effect on that date unless otherwise indicated; the regulations specify that date and do not provide transitional provisions except for the explicit 2024-25 maxima in reg 5(4).

Permanent provisions and future indexing. The instrument sets an indexing mechanism (reg 5(2)) that prescribes how the maximum A is to be calculated in future financial years by reference to B, C and D (previous year’s maximum and Hobart CPI figures). The non‑decrease rule in reg 5(3) establishes a floor relative to the previous year’s maximum. This mechanism means that future annual caps are to be produced mechanically rather than set by ministerial order in each year, unless the regulations themselves are later amended.

No recorded amendments in instrument. The text does not include insertions, deletions, or notes of prior amendments. There is no consolidated history included in the instrument as provided. Any later amendments, repeals, or substitutions would need to be consulted in the official legislation database or subsequent Gazette notices.

Administration. The instrument ends with an administrative note that the regulations are administered by the Department of Treasury and Finance. That department is therefore the point of contact for policy and administrative directions, and the likely sponsor of any future amendments.

Practical implication for future change. Because the instrument sets the indexing rule and ties the CPI to a particular ABS series (Hobart All Groups) and quarter (March), any policy change affecting the rate of increase of the cap will require amendment to reg 5 , for example, a change of CPI series, a change of timing, a change of base for B, or a change to the categories for water customers. The regulations as drafted create a clear procedural route for annual adjustment but require formal amendment to alter the mechanics or the 2024-25 numeric floors.

The regulations include no litigation history. They are new instrument text and the file contains no listing of cases or disputes under the regulations themselves.

What the instrument records. The regulations provide definitions and numeric caps; they do not include adjudicative or dispute resolution language, and they do not record any judicial or tribunal decisions. The instrument does reference Commonwealth Acts and specific sections within them to define certain categories (reg 4(1); reg 6), but those references are definitional and do not denote litigation.

Implications for legal challenge. Given the absence of recorded litigation in the instrument, any legal challenges would arise from implementation mistakes or disputes about statutory interpretation when councils apply the Act using these regulations. Typical litigated issues (outside the instrument) in the context of remissions might involve whether a person satisfies the eligible pensioner criteria, whether a parcel is a "customer" under the Water and Sewerage Industry Act, or whether a facility qualifies as a prescribed institution as defined by Commonwealth Acts cited in the regulations. None of those potential dispute pathways are adjudicated in these regulations; their resolution would turn on the Act, the cited Commonwealth statutes, and case law that is not cited in the instrument.

No specific appeals or review procedures are contained in the regulations; any challenge to a municipal decision to grant or to refuse a remission will fall to the review mechanisms available under the Act, general administrative law, or local government dispute resolution processes. Those processes and any reported litigation about them are not part of the text provided.

The text is short and precise, but a number of practical pitfalls and interpretive nuances arise from how the regulations tie municipal discretion to external definitions and data series. These are the concrete "watch outs" for practitioners working with councils, ratepayers, or institutions.

Different treatment of pensioner concession cards and health care cards (reg 4). The regulations expressly allow a pensioner concession card to count even if it is "for the time being inoperative because the person is temporarily out of Australia" (reg 4(2)(b)). The regulation does not provide the same temporary‑absence exception for health care cards. Practitioners must therefore not assume parity between concession cards and health care cards when assessing eligibility. The operational consequence is that a person with an inoperative concession card due to temporary absence may still qualify as an eligible pensioner, while a person with a health care card who is temporarily out of Australia may not have the same protection under this instrument.

Dependency on Commonwealth definitions and records (reg 4(1), reg 6). The eligible pensioner categories and prescribed institutions import definitions from federal Acts. Two practical risks follow. First, municipal decision‑makers must be familiar with the relevant Commonwealth definitions and their application to individual cases; e.g., what counts as "residential care" under Aged Care Act s 41‑3, or whether a person falls under s 24 of the Veterans' Entitlements Act. Second, some determinations may require reliance on Commonwealth records (card issuance, veterans’ entitlements). Municipalities will need processes to verify federal entitlements and to determine what documentary evidence they will accept.

Which CPI series and quarter to use (reg 5(1)-(2)). The formula depends on the Hobart All Groups CPI and specifically the March quarter figures for two specified years. Municipal officers must ensure they use the correct ABS series and quarter (Hobart series, March quarter) and understand the ABS publication schedule so that the figures are available in time for municipal budget and rates setting processes. Using a national or different-city CPI series, or the wrong quarter, would produce an incorrect A.

Two‑tier cap for 2024-25 (reg 5(4)). The regulations set two different caps for the initial 2024-25 year depending on water customer status ($379.41 vs $558.50). This creates an immediate administrative requirement to determine "customer" status under the Water and Sewerage Industry Act 2008. That Act’s definition of customer may not align perfectly with council records, so councils must reconcile utility customer databases with rates databases. Incorrect classification could lead to erroneous application of the cap.

This section sets out concrete steps and controls for municipalities and advisers to implement the regulations faithfully, and for ratepayers or institutional operators to understand what documentation and status they need.

For municipalities (council staff and decision‑makers)

1. Record the instrument and commencement date. Note the regulations commence 26 November 2024 (reg 2) and the instrument name (reg 1). Ensure council legal, revenues and records teams are informed.

2. Use the 2024-25 statutory maxima. For the 2024-25 financial year apply the caps in reg 5(4): $379.41 where the owner or occupier is a "customer" within the meaning of the Water and Sewerage Industry Act 2008, and $558.50 where not. Record which cap applied to each parcel and the basis for the customer/non‑customer classification.

3. Establish a calculation pipeline for future years. Implement the formula mechanics in reg 5(2) for subsequent financial years:

   • Retain B, the prior year’s maximum before rounding.
   • Obtain C and D: the Hobart All Groups CPI numbers for the March quarter of the financial year immediately preceding and the March quarter immediately preceding that (reg 5(1)-(2)).
   • Compute A = B × C ÷ D (reflecting the formula variables as defined).
   • Apply the non‑decrease check in reg 5(3): if the computed A is less than the preceding year’s maximum, set A equal to the preceding year’s maximum.
   • Apply rounding rules: first round fractional cents to nearest cent (reg 5(5)), then round cents to nearest dollar (reg 5(6)). Store both the pre‑rounding B and final rounded A in council records.

4. Verify the ABS series and quarter. Use the Australian Statistician’s published Hobart All Groups CPI series and the March quarter figures. Archive the ABS source page, the exact series number and the publication date to support audits.

5. Determine and evidence eligible pensioner status. Apply the definitions in reg 4(2). For each remission claim, obtain and retain evidence that the applicant falls into one of the six categories:

   • current pensioner concession card (including when temporarily inoperative due to being temporarily out of Australia) (reg 4(2)(a)-(b));
   • current health care card (reg 4(2)(c));
   • totally and permanently incapacitated person per veterans’ statutes (reg 4(2)(d));