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Local Government Rates

All land in New South Wales is rateable unless it is expressly exempted from rating. Under s.555(1)(e) of the Local Government Act 1993 the following land is exempt from all rates -

"land that belongs to a religious body and is occupied and used in connection with -

(i) a church or other building used or occupied for public worship; or

(ii) a building used or occupied solely as the residence of a minister of religion in connection with any such church or building; or

(iii) a building used or occupied for the purpose of religious teaching or training; or

(iv) a building used or occupied solely as the residence of the official head or the assistant official head (or both) of any religious body in the State or in any diocese within the State".

Land on which churches and halls are erected will generally be exempt under paragraphs (i) or (iii) of s.555(1)(e). Land on which a rectory or other ministry residence is erected will generally be exempt under paragraph (ii) of s.555(1)(e). Care must be taken to ensure that the use by non-church groups of church buildings and halls does not cause the land on which those buildings are erected to become liable to rates. Where buildings are leased, the land will generally cease to be exempt from rates. Where land is used on an occasional basis by a non-church group, the land should remain exempt from rates provided that the main or dominant use of the building continues to be a use described in s.555(1)(e).

The rate exemption does not extend to charges. Hence, local councils can levy charges (such as for waste management services) on land which is exempt from rates.

Current as at 26 February 2010