Local Government rate oversight system – Consultation Paper

22 Aug 2018

The Local Government (Rate Oversight) Amendment Bill 2018 (the Bill) which has been passed in the House of Assembly proposes a statutory framework for a rate oversight scheme (scheme), commonly referred to as a rate capping scheme. In light of the prompt timeframe proposed for implementation of the scheme should the Bill pass into law, the Treasurer of South Australia (Treasurer) has sought advice from the Essential Services Commission (Commission) on:

the preparation of a ‘local government rate capping and variation framework,’ and
the future operational requirements of the scheme. 

The Commission must provide the advice to the Treasurer by 1 December 2018. 

Under the Terms of Reference, the advice is separated into two distinct parts – the formulation of an initial scheme, followed by the design of a full future scheme. This split takes into account the relatively short timeframe for the scheme’s implementation in 2019, should the Bill be enacted.

Given the importance of stakeholder input to both elements of the advice, the Commission has released this consultation paper to gain views on the efficient and effective implementation of the essential elements of the scheme, as it currently stands. 

The Commission is committed to engaging with stakeholders to understand key issues, matters of process and other relevant considerations. The positions put in this paper provide a context within which stakeholders can consider relevant issues and prepare any comments; they do not constitute the Commission’s final findings or recommendations.

The Commission invites written submissions on this paper by 28 September 2018.


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