Councils in Western Australia (WA) have been given a reprieve with the State Government’s announcement that they will not stop the motor vehicle licensing concessions planned for this financial year.
Last week Opposition members voted to support a Disallowance Motion to reverse these measures and reinstate the concessions for local governments.
As part of its 2016-17 Budget process, the then Liberal National Government made a decision to discontinue the motor vehicle licensing concessions granted to local government authorities and the WA Local Government Association (WALGA), effective from July 1, 2017. Local governments would also no longer be exempt from stamp duty for motor vehicle purchases.
The combined measures were expected to deliver savings to the Government of around $10 million per year, as well as further savings in ongoing administration.
WA Treasurer, Ben Wyatt MLA, last week accused the state’s Liberal and National parties of being ‘determined to destroy the State’s finances’, by voting to discontinue the savings measures they introduced just nine months ago while they were still in government.
The reversal of this decision is estimated to save local government authorities $5.6 million per year in motor vehicle license exemption and $4.2 million per year in stamp duty exemption.
WALGA said the plan to remove the concession was in effect the State Government trying to meet its obligations by using local ratepayers’ money.
WALGA President Councillor Lynne Craigie said the local government sector and in particular councils in the Association’s central country and great eastern zones should take some credit for the reversal and appreciated the efforts of MLC Rick Mazza for taking up the cause.
“The financial mess was caused by the previous State Government, but to help fund the recovery they decided to cut support to local communities,” Cr Craigie said.
“It was nothing more than a blatant and unfair cost shift and diversion of responsibility that would have most likely resulted in ratepayers having to make up the shortfall.
“WALGA pushed for the reversal in the lead up to the State election with a public campaign with outstanding and strong advocacy from a core of country councils in particular the Shire of Corrigin.”
During the debate in the Upper House it was suggested that the funding that would now be lost to the State Government could be recovered by cuts to local road funding.
Cr Craigie said the shortfall created by the reversal was a consequence of the original unfair decision to shift costs to local communities and Local Government should not be now financially punished.
