Launceston Airport against Northern Midland Council has been dismissed by the high court

The verdict cleared the way for Northern Midlands Council to legally pursue its long-running case for businesses on Commonwealth land at the airport to pay "fair and equitable rates".

READ MORE: Labor plan for funding to establish hearing loss centres

This comes after the council initially lost the case in Federal Court.

However, on appeal, it was determined the council did have standing, meaning the initial judge would have to reassess the case.

The airport appealed this, but that appeal was officially dismissed last month.

READ MORE: COVID-positive woman dies at Northern aged care facility; hospitalisations continue to increase

Northern Midlands mayor Mary Knowles OAM said she was pleased with the decision, which meant the matter could now properly be considered by the Federal Court.

"This is a big win for council as the High Court not only resolved the jurisdictional arguments but also awarded costs in our favour," she said.

"Council's clear view is that commercial activities undertaken on Commonwealth land are rateable in accordance with the national competition policy principles, and the terms of the lease between the Australian Government and the airport operator Australian Pacific Airports Pty Ltd."

Cr Knowles said she was looking forward to the Federal Court concluding its consideration of the matter, which dates back to 1998.

READ MORE: The federal election is finally, officially on for May 21. Here's what that means

It was in that year federal airports were privatised and long-term leases were put out to private enterprise.

Despite council not having the power to apply rates and charges on the airport - owned by the Commonwealth government - due to constitutional laws, lessees were still contractually obligated to make ex-gratia payments in lieu of rates.

However, after the airport site underwent a revised valuation by the Valuer-General in 2013, a 50 per cent increase in rates was recommended. That meant the APAC was faced with a steep increase in its required payments.

READ MORE: Australia's best highland dancers converge for Championship held at Silverdome

The escalated fees were disputed by the airport operators who argued, that since council was not a party to the lease contract between itself and the federal government, it did not have a right to bring the case.

According to an independent assessment by valuer Herron Todd White, APAC paid the council rates, however, those findings excluded departure and arrival lounges, baggage claim areas, toilets, and waiting areas.

Northern Midlands Council estimated that the Launceston Airport owed it almost $1.8 million from 2013 to 2018. The matter will now go back to the federal court at an undisclosed date.

What do you think? Send us a letter to the editor:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: