WA closes mining rates loophole with new legislation
The Association of Mining and Exploration Companies (AMEC) has welcomed the passage of legislation through the Western Australian Parliament that restores the long-standing position that miscellaneous mining licences cannot be subject to local government rates.
The Local Government Amendment (Rating of Certain Mining Licences) Bill 2025 passed both houses of Parliament, closing what AMEC described as a loophole created by a recent court decision and providing greater certainty for the state’s resources sector.
The legislation follows the Supreme Court of Western Australia’s decision in Shire of Mount Magnet v Atlantic Vanadium Pty Ltd, which raised the possibility that mining companies could be charged local government rates on land held under miscellaneous licences.
Miscellaneous licences are commonly used across the mining industry for supporting infrastructure such as rail corridors, pipelines, roads, power lines and fly-in, fly-out accommodation facilities.
AMEC chief executive officer Warren Pearce said the Bill restored the long-standing understanding that such licences were exempt from local government rating.
“Common sense has prevailed. This Bill restores the status quo and confirms the long-standing understanding that miscellaneous licences are not subject to local government rating,” Pearce said.
“Mining and exploration companies already make significant contributions to local governments through rates on mining and exploration tenements. They also contribute through jobs, royalties, regional procurement, community investment and voluntary partnerships.
“What this legislation prevents is industry being hit again through a novel interpretation of the law that created the risk of double and triple rating of the mining industry.”
AMEC argued that if the issue had not been addressed, it could have imposed substantial additional costs on the sector and undermined Western Australia’s reputation as a globally competitive mining jurisdiction.
According to Pearce, the reinterpretation had the potential to cost mining and exploration companies more than $50 million annually.
“With local governments having the ability to seek rates back five years, the resources sector could have faced an extraordinary $250 million additional rates bill,” he said.
AMEC said the passage of the Bill delivers investment certainty and removes the risk of significant additional rating costs for the State’s mining and exploration industry.