Tasmanian not-for-profit aged care provider Southern Cross Care Tasmania (SCCT) has been surprised that four councils were taking them to the High Court.
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This follows a Supreme Court ruling last month in favour of SCCT against four councils (Clarence City Council, Hobart City Council, Kingborough Council and Meander Valley) that not-for-profit, charitable aged care institutions should not have to pay general rates as part of their rates bill.
Prior to the Supreme Court ruling, Southern Cross Care Tasmania run residential villages alone paid in excess of $500,000 in rates bills to the four councils for the two financials years 2016-17 and 2017-18.
The appeal to the Supreme Court to remove rate payments was initially lodged to reduce the financial burden on aged care residents.
SCCT chief executive Richard Sadek said the unanimous decision by the full bench of the Supreme Court of Tasmania should be respected by the councils.
“It is very difficult to understand why the councils are going to expend additional ratepayers’ money on a High Court appeal,” Mr Sadek said.
The peak body representing the aged care industry, the Aged and Community Services Association is highly critical of the decision to challenge the ruling in the High Court.
ACSA executive director for Tasmania Darren Mathewson said the challenge was short-sighted, short-term and lacking any strategic insight.
“Demographics indicate this is a growth industry for locals and that investment in infrastructure and housing by not-for-profits should be welcomed in their municipalities,” Mr Mathewson said.
“The lack of strategic decision-making to support organisations like SCCT by local government is astounding. The non-for-profit sector is investing millions in the regions, much needed housing for older people that then frees up stock in the general community,” he said.
“They should be rolling out the welcome mat rather than taking them to the High Court.”
Meander Valley Council general manager Martin Gill confirmed the council has lodged the application to challenge the decision in High Court.
Mr Gill said at this point he did not want to comment further on the council’s decision.