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Department of Premier and Cabinet

Financial Reform Partnership Agreement

The statewide partnership agreement between the Government of Tasmania and Tasmanian councils on financial reform was signed by former Premier Jim Bacon and Local Government Association of Tasmania president Lynn Mason on 29 July 2003.

The partnership agreement was the first of its kind in Australia. No other state or territory has had an agreement on financial reform between the two spheres of government.

The major reforms include:

  • the State Government paying council rates on crown land, apart from certain types of reserves, roads, bridges and associated infrastructure and hydro land
  • councils paying all state government taxes including payroll tax and land tax, with the exception of parks, reserves and conservation areas
  • the abolition of up to $10 million in State Government levies on councils.

The partnership agreement has now concluded because it has been fully implemented. The legislative reforms agreed to under the partnership agreement were put into effect through the State Government and local government Financial Reform Act (2003). A public guideline for the implementation of the Act has been issued by the Department of Treasury and Finance.

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