Andrew Emmett & Sarah Clark Department of Water, Land and Biodiversity Conservation Donna Fox Wattle Range Council The NRM Levy Presentation to Councils in Regions without Catchment Levies

Today’s Presentation: –Overview of legislative framework for NRM, Plans and the NRM levy –Detail on the NRM levy provisions – the roles of the Minister, Board and Councils –How it actually works – processes –Questions / Clarification

Natural Resources Management Legislative Framework Water Resources Act Animal & Plant Control Act Soil Conservation & Land Care Act Native Vegetation Act Pastoral Land Management Act Local Gov’t Act etc, etc Natural Resources Management (NRM) Act NRM

Financial Arrangements: Previous Australian Government State Government Local NHT ____ NLP ____ NAP INRM Rates Component (APC) ________ Levy SCB APC CWMB NRM

Financial Arrangements for Regional NRM Boards Australian Government State Government Local NHT ____ NLP ____ NAP NRM Levy (replacing APC & catchment levies) Regional NRM Boards NRM

Initial Plan Regional NRM Plan takes 2 + years Act provides for an Initial Plan to enable funds to be raised while Board prepares comprehensive regional plan Initial Plan–limited in scope (by design) with respect to NRM Act requirements for regional NRM plan IP seen as an umbrella plan bringing together existing plans and programs of previous sectors Minister can dispense with consultation processes

Initial Plan timing Difficult in 2006 due to Election (18 March) Initial plans will need to be adopted by December 2005 or after Election (late March early April) Plans with levy proposals have to be considered by Natural Resources Committee of Parliament The Minister needs approval of Governor for land- based levies (Cabinet process) Essential that Board’s complete Initial Plans asap

NRM Levy: Context NRM Act provides for NRM Boards to be funded by a NRM Levy to support implementation of regional NRM plans Two types of NRM levy –Contributions from Councils (“Land-based”) include former land-based catchment levies and APC contributions –Levies on licensed water users in prescribed water resource areas (formerly part of catchment levy)

NRM Levy: Land-based Levy Philosophy Board’s plan requires Councils to contribute to implementation of NRM plan NRM Act then requires councils to reimburse themselves by raising levy on landowners Two separate processes

NRM Levy (Land-Based): Initial Plan Process Initial Plan identifies amount to be contributed by Councils Minister determines shares of Councils (in consultation with Councils) Draft Initial Plan prepared Consultation with Councils on basis of levy Councils provide advice on collection costs

NRM Levy (Land-Based): Process – NRM Board Role NRM Board sets basis for levy in NRM Plan after consultation with Councils re 6 options:  Value of land  Fixed amount  Land-use (fixed amount)  Area of land  Land-use and area of land  Location NRM Board consults Councils on any reimbursement to be sought

NRM Levy (Land-Based): Process - Minister Minister requires information for establishing levies  where basis is capital value - information obtained from Valuer General normally about March  where fixed amount - info sort from councils about Feb - March Minister calculates shares and consults councils on their share Minister seeks approval of Governor (via Cabinet) and Gazettes shares about end of May

NRM Levy (Land-Based): Process - Council Role Provide info - if and when required Calculate levy rate on basis set in Board’s plan to return their share as gazetted Take into account any rebates and remissions in line with provisions in Chapt 10 LG Act Include levy in rates notice as separate line Pay contribution to Board at end of each quarter

NRM Levy (Land-Based): Process – Council Role (contd) NRM Act provides that Councils can seek to recover costs incurred in collecting the levy Joint Local / State Gov Working Party Method to be established by regulation shortly – mechanism agreed by LGA Councils will need to provide an estimate of these costs to the regional NRM Board for budget purposes

NRM Levy – Communication In areas where there was no catchment levy the NRM levy will be perceived as a new levy In regions where there was a catchment levy an increase will be noticed in most areas Critical to undertake a communication strategy to ensure the message is sold that this is not a new levy Joint DWLBC / Board / Council program Funded by State / Board

Improvements from Water Resources Act Model A lot was learnt from the operation of the land-based levy system established in the Water Resources Act The NRM system is a simplified version of the Water Resources Act Model

Improvements from Water Resources Act Model Three key improvements: 1)Exemption from paying the land-based levy provided to water licensees is removed 2)Minister does not take into account rebates and remissions – only done at Council level Outcome of 1) and 2) is that amount gazetted is what Councils actually pay – ie a much clearer audit trail is provided 3) Definitions in the NRM Act defer to the LG Act, eg - contiguous land - single farming enterprises Relevant to fixed levy options

NRM Levy – Implementation An NRM levy is to be applied in accordance with the separate rate provisions under Chapt 10 of the Local Government Act (unless varied by the NRM Act provisions) The amount that a council raises for the NRM levy should be equivalent (as reasonably practical) to the amount required to be paid to the regional NRM Board, after providing for all eligible rebates and/or remissions

NRM Levy – Implementation (contd) Rebates and Remissions If a Council gives either a mandatory or discretionary rebate of rates, it must also give the equivalent rebate for the NRM levy If a Council gives a remission or postponement of rates, the remission or postponement must also apply to the NRM levy

NRM Levy – Implementation (contd) Pensioner Concessions Mandatory The NRM Act (s95(6)) specifies that as a separate rate the levy is to be taken as as a rate imposed under the Rates and Taxes Remission Act. Where the 60% concession on the general rates is less than the $190 (or $100 for self funded retirees) then the NRM Levy must be included in the concession calculation.

NRM Levy – Implementation (contd) Pensioner Concessions - contd Discretionary A Council may choose to provide a concession to the NRM levy However, Councils would need to adjust the levy to offset the impact of such a concession

Reimbursement of Council Costs The rates to be included in the regulations applicable in are as follows: Establishment costs $7,918 per council + $0.52 /rateable assessment (option to identify actual costs and claim those) Annual costs $1,848 per council + $0.18 /rateable assessment The rates will be indexed by CPI for future years

Key DWLBC Contacts Andrew Emmett / Sarah Clark