LOCAL GOVERNMENT BRIEFLY
January 1999 Issue No 63
COMMUNITY TITLE
The Community Title legislation came into being in November 1996. A number of issues have emerged from the Community Title Applications that have been dealt with by local government since the Act came into force.
Some of the issues that have emerged for local government include:
- Whether internal roads should be vested as public roads or retained by the Community Corporation as common property;
- Whether endorsement of the scheme description (where applicable) imposes a responsibility on the Council to complete certain infrastructure such as roads which were to be provided by the developer where the developer has failed to provide such infrastructure;
- What degree of discretion should be exercised in approving a non-conforming land division under community titles. This typically applies to proposed developments where the size of the lots contemplated are significantly smaller than the minimum allotment size for a zone as prescribed in a Development Plan;
- What additional information can the Council as the relevant planning authority require in a scheme description;
- When a proposed community title development requires the developer to undertake further work (such as the provision of roads and other infrastructure) at a future stage, how can the Council ensure that the developer carries out this work as intended;
- How can a Council ensure that development of a "Greenfield" community division is undertaken in accordance with the standards prescribed in the community title scheme description.
The Lands Titles Office has now deposited just on 2000 Community Title plans of division and demand for the use of community titles is steadily growing. However, there is still some uncertainty and confusion in the property development industry regarding the use of community titles. Local government is also faced with the challenge of assessing community title applications against the requirements of Development Plans which in many instances do not as yet contemplate this form of division.
Last year Rod Hammond, our registered conveyancer, and Gavin Leydon held a workshop session for the planning staff of one of our larger Council clients. This proved an ideal forum for planning staff to discuss issues arising out of particular community title applications that they had received. The feedback we received indicated that the session clarified the requirements of the Act and how some of the issues that arise out of community title can be dealt with at the planning stage.
You may wish to consider Norman Waterhouse holding an informal workshop on Community Titles in your Council. The workshop could take the form of a discussion about the community title applications you have received that have caused problems and we would answer any questions that your staff may have regarding community titles generally.
If you feel that such a workshop would be of benefit to your Council, please contact either Rod Hammond or Gavin Leydon.
OBJECTIONS TO ROAD CLOSURES UNDER THE ROADS (OPENING & CLOSING) ACT
The new Minister for Administrative Services the Honourable Robert Lawson QC MLC has adopted a new policy in relation to objections that are received to road closures.
Before providing his approval to a road closure where an objection has been received, the Minister will now require that the Council attempt to obtain a written withdrawal of the objection before the final documentation is lodged.
If the Council cannot obtain a withdrawal of the objection, then a submission must be made to the Minister stating the reasons in full as to why the Council is proceeding with the road closure, notwithstanding that an objection has been made.
In addition, the Minister will now also require that a certified copy of the Minutes of the Council meeting at which the resolution was made to continue with the road process also be lodged with the final survey plan and road closure documentation.
When dealing with road closures over which objections have been received, please be aware that the new Minister will not give his approval to the road closure unless a written withdrawal of the objection has been obtained, or unless the Minister is provided with a detailed submission by the Council, accompanied by a certified copy of the Minutes of the Council Meeting at which the objection was dealt with.
Please contact Rod Hammond if you require any further information regarding objections to road closures.
GST
Although the introduction of the GST is still some 15 months away, it is already having an impact. For example, the negotiation of an agreement where the performance by either party is likely to extend beyond 1 July 2000 needs to consider the implication of the introduction of a GST. For councils this would include leases and licences, building contracts, consultants agreements waste collection contracts and the like.
Commentators have noted that rates are likely to be exempt from the GST but all other moneys received by councils are likely to be subject to GST. For example, a licence fee received by a council for the use of a tennis court will attract 10% GST in the hands of the council.
No one will know the full impact of the legislation until it is passed by Parliament. However it is important that Councils make provision in all agreements that are likely to be affected to ensure that any price quoted in the agreement is exclusive of GST. In the example of the tennis court licence, there should be a mechanism to increase the amount of the licence fee by an amount equivalent to the GST payable. Alternatively, an adjustment clause could be drawn to take into account the overall impact of the whole tax restructure such as the removal of stamp duty and sales tax that would otherwise have applied. This type of clause is usually reserved for the more complicated transactions.
For further advice on GST please contact Peter Fisher or Kim Evans.
The contents of this newsletter are for information only and
should not be taken as advice on the law. This newsletter
may be reproduced in whole or in part with the prior
permission of Norman Waterhouse and acknowledgement
of its source and copyright.
For further enquiries about
issues covered in this newsletter, please contact Ted Byrt,
Gavin Leydon, Michael Kelledy, Kym Tredrea or
James Levinson on 61 8 8210 1200.
