Environmental issues

Water

Stormwater management service charge

The Local Government Act 1993 was amended in 2005 to allow councils the option to levy a stormwater management service charge on eligible residential or business rateable land for improved stormwater management. This change was made in recognition of councils’ key role in stormwater management and their need for a sustainable funding source to support their stormwater services. The additional stormwater services being delivered using the SMSC are helping to improve the health of urban waterways, reduce the impact of local flooding in communities and promote alternate water sources to reduce demand on potable supplies.

The Division of Local Government (DLG) is the central agency for local government, with a key role in managing the relationship between councils and the State Government. DLG is responsible for the overall legal, management and financial framework for local government.

The Division of Local Government (DLG) is responsible for the Local Government Act 1993 and its regulations. It oversees the implementation of the Stormwater Management Service Charge (SMSC). OEH works closely together with DLG by providing technical support and information.

Guidance

The Division of Local Government and the Office of Environment and Heritage (OEH) jointly prepared the Stormwater Management Services Charge Guidelines (2006). The Guidelines assist councils that wish to levy a stormwater management service charge. It describes, in detail, the requirements associated with levying the charge.

Implementation of the SMSC

OEH, with assistance from DLG, has undertaken a desktop monitoring project to check on the implementation of the stormwater management service charge. The project was based on published council information and DLG data for the financial years of 2006/2007, 2007/2008, and 2008/2009.

The project report presents the findings from this monitoring project.

Key findings

  • Councils levying the charge have increased their stormwater management spending by an average of almost 90 percent since it was first implemented
  • In 2008/2009, 77 councils levied a stormwater management service charge, raising over $39.3 million in additional funds for stormwater management services in local communities across the state.
  • The increased funding is resulting in more on-the-ground capital works and increased maintenance of council stormwater assets. These stormwater management services are reducing flooding, improving the health of urban waterways and providing alternate water source through stormwater harvesting and reuse.
  • Most councils levying the charge are appropriately raising and spending the revenue.
  • The stormwater management service charge is delivering significant benefits in a transparent and robust system.
  • Only a few minor implementation issues were identified. The report makes recommendations to address these issues.

Page last updated: 22 June 2011