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ARTICLE · 09 OCTOBER 2014

Is your local government service charge invalid?

The decision clarifies that a service charge may only be imposed by a local government when adopting an annual budget.

AustraliaGovernment, Public Sector

The case of City of South Perth and Minister for Local Government [2012] WASAT 177 in the State Administrative Tribunal (SAT), clarified that a service charge may only be imposed by a local government when adopting an annual budget or, if a service charge is quashed by the SAT or a court, when adopting a budget in form and manner similar to the annual budget.

The City of South Perth Decision

The City of South Perth sought a declaration as to the validity of a service charge it imposed to recoup its contribution for Salter Point underground electrical power system.

The City did not impose the service charge when it adopted the 2011/2012 annual budget in July 2011, primarily because it did not know at that time how much individual landowners, who were to pay the service charge, were liable to pay.

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