The Local Government Amendment (Rating of Certain Mining Licences) Act 2026 (the Amendment Act) introduces targeted amendments to the Local Government Act 1995 (the Act) to clarify the rateability of certain mining-related licences on Crown land. The reforms provide certainty that miscellaneous licences and small prospecting licences (under 10 hectares) issued under the Mining Act 1978 are exempt from local government rates.
Miscellaneous licences are used in connection with mining tenements to facilitate infrastructure such as roads, aerodromes, pipelines and staff accommodation needed to support mining activities.
The Act maintains an equitable approach to the rating of miscellaneous and small prospecting licences, which can co-exist with other types of mining tenements and are issued solely to support mining operations. The primary mining tenements associated with these licences remain subject to the payment of local government rates.
These reforms are intended to eliminate the risk of ‘double rating’ of land following the 2025 Supreme Court decision, providing greater clarity and certainty for both local governments and the resources industry in Western Australia.
What you need to know
On 8 July 2025, the Supreme Court of Western Australia delivered its decision in the Shire of Mount Magnet v Atlantic Vanadium Pty Ltd [2025] WASC 274, in which occupied Crown land under a miscellaneous licence is rateable under section 6.26 of the Local Government Act 1995.
This decision overturned the 2024 decision of the State Administrative Tribunal, which had previously held that such land was exempt from local government rates, regardless of whether it was occupied.
In summary, the reforms in the Amendment Act do the following:
Confirms rateability
Miscellaneous licences and small prospecting licences (under 10 hectares) issued under the Mining Act 1978 are not subject to local government rates when located on Crown land, while other mining tenements on the same land remain rateable and may be overlapping with these licences.
Applies retrospectively
This allows refunds to be issued for rates notices relating to miscellaneous licences and small prospecting licences on Crown land that apply from 1 July 2017, as well as preventing local governments from retrospectively amending the rate record to impose rates on these licences for previous financial years.
Extinguish related liabilities
Transitional provisions in the Amendment Act extinguish any rates, charges, interest or related liabilities previously imposed from 1 July 2017, reinforcing the long-held understanding prior to the 2025 Supreme Court decision.
Next steps for local governments
Local governments that have issued rate notices based on a miscellaneous licence or a small prospecting licence on Crown land from 1 July 2017 will be required to refund those rates within 90 days of the validation day. Noting that validation day is 25 June 2026, refunds must be issued by 23 September 2026.
Where rates have been levied for other rateable mining tenements overlapping the same land, no refund is required, as the Amendment Act does not alter other rateable interests in relation to the land. For example, mining camps that are located on the land of a rateable mining tenement remain rateable.
Affected local governments will need to update their rating records and financial statements. Where applicable, local governments must also reflect any refunds in future financial statements. More information on this is available in the Implementation Guide.
For further queries on matters relating to issuing refunds and levying rates, local governments can contact the Local Government Financial Policy team at LG.accounting@lgirs.wa.gov.au.
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