Differential rating retrospectively validated in Queensland

In this Alert, David Nicholls considers the recent urgent amendments made to the Local Government Act 2009 and the City of Brisbane Act 2010 validating retrospectively differential rating applied to "investor categorised" residential property, in the context of the Supreme Court's decision in Paton & Ors v Mackay Regional Council.

Key Points:

• the amendments reverse the effect of the Supreme Court's decision and validate both prospectively and retrospectively differential rating which discriminates between identical residential properties based upon whether the property is the principal place of residence of its owner;
• the Supreme Court found that the practice of differential rating based upon the characteristics of the owner rather than the property was impermissible under the Local Government Act 2009 and an invalid exercise of power by the Council;