Win over Benalla Rates Issue

National’s Senator, Bridget McKenzie has announced that the Federal Government has agreed to make a transition payment of almost $448,000 to the Benalla Rural City Council, to avert a shortfall in rates to the Council followed the sale by Thales to the Commonwealth of the Benalla Munitions Facility
“This is great news for the Council and the wider community as the impact would have left a significant hole in the Council’s Budget for this financial year.
“When I became aware of this issue about two months ago, I was briefed by the Council on impact of the rates shortfall and immediately raised it with Defence Minister Marise Payne.
The Commonwealth Government established the Benalla Munitions facility in 1993 later corporatising the facility and transferring the property to Thales Australia.
The agreement with Thales expired at the end of June last year and the property was returned to the Commonwealth and is now operated under contract to Thales Australia, trading as Australian Munitions.
Federal Government properties are not liable for local rates under the Australian Constitution Act.
Because the Commonwealth is not responsible for the payment of rates, the sale would have left the Council with a shortfall of almost $448,000 in lost revenue.
Senator McKenzie said the meeting was constructive with further talks arranged between the Defence Department and the Council on transition arrangements.
“This would have been devastating for a rural council like Benalla who is doing everything it can to spend ratepayers dollars effectively, an environment made harder by the State Labor Government cap on rates.
Mr McIIroy said the meeting was a breakthrough in securing Council income and averting an immediate loss of revenue of this magnitude for the 2016-17 financial year.
“Senator McKenzie was instrumental in bringing this about and arranging the meeting with Defence Minister Payne and the council is very grateful for the support of Senator McKenzie.
“The Council now has some certainty on this issue and will participate in further discussions regarding future funding,” Mr McIlroy said.
Senator McKenzie said talks are continuing between Defence and the Benalla Council in a bid to find an appropriate exit strategy arrangement on the issue.