Bills

Statutes Amendment (Rates—Electricity Generation) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 19 March 2025.)

The Hon. S.L. GAME (16:39): I rise today to briefly speak in support of the Hon. Frank Pangallo's private member's Statutes Amendment (Rates—Electricity Generation) Bill 2025. The bill effectively aims to erase a 25-year rates anomaly for electricity generation companies based in South Australia. It will allow South Australian councils to apply the same rating principles to energy providers as those currently applied to other businesses and residents, resulting in these companies providing a fairer contribution to the communities in which they operate.

The honourable member says South Australian councils are collectively losing around $6 million a year as a result of this historic ECRD Act, and he also points out that a predicted increase in land use for electricity generation in South Australia in the coming years could see that $6 million figure eventually jump up to an annual figure of $20 million.

In speaking to this amendment, and keeping it particularly relevant amid the current political zeitgeist, the honourable member has painted this proposed change as a cost-of-living issue, rightly pointing out that regional South Australians could benefit most from this change. We also note that, unsurprisingly, this measure has won the support of the Local Government Association of SA, which our office has spoken to, and its member councils.

Underwriting this overwhelming support from the local government sector has been suggestions of rates discounts should this bill become law. Indeed, the Wattle Range Council has already raised the prospect of a 5 per cent cut to ratepayers' annual rates bills, as reported on recently in local media, including The SE Voice.

Should the honourable member's bill become law, I will be keeping a very close eye on the impacted councils to see if they indeed follow through with these mooted cost-of-living cuts, or whether the additional funds reaped merely disappear into council coffers, because local government certainly has a role to play in easing cost-of-living pressures, chiefly through its own spending decisions and subsequent rates charges, many of which have escalated way above CPI.

One of our concerns with this amendment was whether it would potentially serve as a disincentive for South Australian energy investment, which is the last thing we need, given the rush to unproven costly renewables embraced by this nation and our own state. However, we have been reassured that energy companies do not make location decisions based on council rates, which pale in comparison to operating costs. The LGA tells us this observation is backed up by data.

Our other concern is whether any increased costs incurred by energy companies would be passed on to consumers. Again, the LGA has reassured us that these costs cannot be passed on due to the structure of the national market, including spot pricing. Armed with those two assurances from the LGA, and with a pledge on behalf of ratepayers to continue monitoring rates notices distributed by the impacted councils, we thank the honourable member for this commonsense amendment and look forward to supporting it.

Debate adjourned on motion of Hon. I.K. Hunter.