Government says it will keep cap on landscape levy increases
The Malinauskas Government has ruled out allowing landscape boards to increase their landscape levies beyond the rate of CPI, after the change was recommended by a former Labor minister in an independent review.
South Australia's landscape boards are tasked with deciding how landscape levy funding should be spent to manage natural resources. Photo: Tony Lewis/InDaily
Former Labor Environment Minister John Hill last year conducted a mandatory review of the Landscape South Australia Act 2019, which governs the management of the state’s land, water, plants, biodiversity and pests.
The Act also outlines the functions of South Australia’s nine landscape boards.
The boards raise funds through regional landscape levies collected from households and landowners by local councils. They spend the funds on things like pest control, ecosystem management and urban greening programs.
A map of South Australia’s landscape board regions. Image: Landscape SA
Currently, landscape boards are only allowed to increase the rate of their landscape levy consistent with the Consumer Price Index (CPI) unless an exemption is granted by the Environment Minister for “exceptional circumstances”.
But Hill’s review recommended the Act be amended to allow boards to increase the landscape levy beyond CPI, subject to approval from a parliamentary committee.
“It was suggested that enabling landscape boards to increase levies above Consumer Price Index… would help ensure they are able to effectively achieve their objectives with increased flexibility to respond to emerging changes in their operating environment,” Hill’s review, which was tabled in April, states.
“Concerns were also raised that the current landscape levy model does not provide sufficient capability for some landscape boards to respond to high-priority or high-risk issues across the state.
“It was suggested that the Landscape Act include a mechanism for ‘special purpose’ levy-raising.”
The review recommended the Act be amended to include provisions for a “state-wide or one-off” special purpose levy to “address specific high-priority issues”.
The Opposition seized on Hill’s recommendations, stoking fears it could lead to another cost-of-living hit with councils already lifting rates across Adelaide.
“Labor just increased water bills and this week it could be our council rates,” acting shadow environment spokesperson Jack Batty said.
“Labor has already broken their pre-election promise of no new taxes and if this new special purpose tax is enforced, South Australians can expect big price hikes on their council bills.”
But a Malinauskas Government spokesperson today ruled out removing the CPI cap. In a statement, they said: “There will be no change under this government to allow the Landscape levy to increase beyond CPI.”
Environment Minister Susan Close also indicated in June the government was unlikely to accept Hill’s recommendation on CPI or the special purpose levy.
Asked by Batty in a budget estimates hearing whether the government was considering enabling landscape boards to increase their levy beyond CPI, Close said: “It is not something that is particularly appetising for a government, particularly at present with the cost of living.”
“The CPI is quite a significant rate and more charges would not be welcome.
“It is under consideration only in the sense that all of the recommendations are, but there is little to no appetite from this government to increase the charges for people, particularly recognising the challenges that many South Australians are going through right now.”
Susan Close in a budget estimates hearing in 2023. File Photo: SA Parliament livestream
Asked specifically about the recommendation for a special purpose levy, Close said: “Similarly, the idea of continuing to contribute to people’s financial stress at the moment is not one that I imagine is appetising on either side of politics.”
Green Adelaide, the metropolitan landscape board which spans from Angle Vale to Sellicks Beach, raised its levy 8.4 per cent from 2022/23 to 2023/24, based on the actual CPI rate in Adelaide in September 2022.
The board collected $32.1 million from the regional landscape levy in 2023/24, up from $29.6 million the year prior.
A Green Adelaide spokesperson said its board “did not comment on the landscape levy CPI rates” to the review.
The state government spokesperson said it would complete its response to Hill’s recommendations “later this year”. The full review contains 66 recommendations.
InDaily contacted Hill’s office for comment.
