Four councils – Hobart City Council, Clarence, Kingborough and the Meander Valley – began charging rates on retirement villages run by charitable organisations in 2016, arguing that rates could be charges if the properties weren’t’ used for charitable purposes.
The Not For Profit took its case to the administrative appeals division of the magistrates court, but it uphold the council’s rights.
Now Southern Cross Care has launched an appeal in the Supreme Court, calling for the decision to be set aside and the $564,000 rates bill for its 13 villages to be returned.
“We believe that the land on which we operate our accommodation retirement villages is owned and occupied exclusively for charitable purposes and should have the benefit of a statutory exemption from the levying of general rates,” Chief executive Richard Sadek told the ABC.
The Local Government Association of Tasmania doesn’t agree though. “Under the law it’s clear that just because a land owner is a charitable institution, if the purpose isn't charitable you should have to pay rates,” chief executive Katrena Stephenson said.
