Legislative Council, Thursday 20 August 2026
Ms FORREST question to MINISTER for ENERGY and RENEWABLES, Mr DUIGAN
With regard to the Payment in Lieu of Rates (PiLoR) scheme for renewable energy generation, consistent with Victoria and other states can the Minister for Energy and Renewables respond to the following:
1) Renewable generation plant is currently classified as a chattel rather than a capital improvement to land, and is therefore not rateable in the ordinary way.
a. What is the legal or administrative origin of this classification, and has the Government reviewed whether it remains appropriate given the scale of current and committed wind, solar and battery investment in Tasmania; and
b. does this classification apply equally to Hydro Tasmania’s generating assets, and if so, has the Minister sought advice on whether it is consistent with the Commonwealth’s competitive neutrality framework?
ANSWER:
a. Based on advice from the Office of the Valuer-General, statutory valuations under the Valuation of Land Act 2001 assess the fee simple interest in land. Where renewable energy infrastructure is installed on land owned by another party, ownership of that infrastructure remains separate from ownership of the land. Section 49G of the Electricity Supply Industry Act 1995 expressly provides that ownership of prescribed electricity infrastructure is not affected by its attachment, affixation or annexation to land. Accordingly, infrastructure which is not owned by the fee simple owner cannot form part of the statutory valuation of that fee simple interest. The valuation treatment reflects the application of the existing legislative framework by the Office of the Valuer-General in undertaking statutory valuations.
b. Hydro Tasmania operates within Tasmania’s Government Business Enterprise and competitive neutrality frameworks. It makes an annual rates equivalent payment directly to the Tasmanian Government. These arrangements are designed to maintain competitive neutrality, reflecting its unique position as a Government-owned entity with land exempt from rates under legislation.
QUESTION:
- Does the Minister support, in principle, a nationally consistent rating treatment for renewable generation assets (i.e. PiLoR), given operators of multi-state portfolios already budget for and accept this model elsewhere?
ANSWER:
The Tasmanian Government recognises the interest within the local government sector regarding rating arrangements for renewable energy developments. Further work is required to assess whether a Payment in Lieu of Rates (PiLoR) scheme would be suitable for Tasmania. As the Minister for Local Government advised in response to Questions on Notice on this matter, detailed investigation of alternative rating frameworks, including PiLoR arrangements, has not yet been undertaken and forms part of future rating reform considerations.
QUESTION:
- Has the Minister or the Department had any direct engagement with any windfarm operators or proponents, on the rates treatment of their Tasmanian current or future assets, including any complaints or concerns raised about administrative complexity under the current multi-landholder valuation approach?
ANSWER:
I have not been advised of representations raising concerns regarding the administrative complexity of the current valuation and rating arrangements for renewable energy developments.