Six Adelaide councils increase rates higher than planned to cover SA Budget’s Solid Waste Levy rise

Two more Adelaide councils have increased their rates higher than planned to cover an increased rubbish tax — taking the total to six.

• Council pamphlets blaming Budget waste levy hike for rate rises
• TTG Council first to raise rates to Budget waste levy hike
• Salisbury Council next to follow up with rate rise
• Blindsided mayors furious at Budget waste levy hike

Playford Council and Onkaparinga Council have joined four other Adelaide councils by increasing their rates higher than planned to cover a rubbish tax hike.

Playford elected members have voted for a 3.3 per cent increase — rather than 2.9 per cent — while Onkaparinga has decided on 2.28 per cent instead of 1.6 per cent, which would have been its lowest on record.

The increases have been caused by the State Government’s decision to increase the Solid Waste Levy by 40 per cent, which it announced in the State Budget with no warning to local government.

The levy is charged on rubbish dumped at landfills and raises tens of millions each year from councils.

Onkaparinga mayor Erin Thompson ... the council raised rates by 2.28 per cent instead of the planned 1.6 per cent.

The announcement caught councils across the state by surprise, forcing them to hastily revise draft budgets — and rate increases — which had been sent out for community consultation.

Onkaparinga mayor Erin Thompson said her council had worked hard to reduce its costs to keep its rate increase to a minimum, despite being hit by other extra waste management costs from the China Sword recycling crisis.

“The State Government’s last-minute 40 per cent increase in the Solid Waste Levy has left council with no choice but to up our proposed increase from a record low of 1.6 per cent to 2.28 per cent,” she said.

“All the hard work our staff and elected members did to bring our rates into line with CPI have been in vain, thanks to this trash tax increase from the State Government that is 25 times higher than the December quarter CPI.

“This is clearly a case of do as we say and not as we do.”

Ms Thompson said Onkaparinga paid $4.1 million for the Solid Waste Levy this financial year, with the 40 per cent increase taking it to almost $5 million in the next financial year.

“In 2020-21, there will be a further increase of $737,679, bringing the total increase over two years to more than $1.6 million,” she said.

“But despite this, and despite the fact the State Government had $120 million in the green industries slush fund last June, funded by the Solid Waste Levy, none of it has been spent on initiatives in the south.”

At Playford’s monthly meeting on Tuesday, elected members debated various options ranging from a 3.8 per cent increase to a 2.6 per cent increase before deciding on 3.3 per cent.

Playford mayor Glenn Docherty ... the council voted raise rates by 3.3 per cent on Tuesday night. Picture: COLIN JAMES

Cr Clint Marsh, who wanted a 3.8 per cent increase, said council had been “thrown a huge curve ball” by the State Government.

“If we try to absorb the Solid Waste Levy, we are looking at having to cut projects like the Grenville Centre (retirement hub project), road upgrades, footpaths, soccer club facilities for females, stormwater drainage and traffic management,” he said.

Cr Dennis Ryan suggested a 3 per cent increase to minimise financial hardship on ratepayers while trying to keep some important projects going.

“We have a lot of people who are hurting pretty badly out there,” he said.

Deputy mayor Marilyn Baker said she knew many residents were struggling financially but it was important council kept up with the rapid pace of growth in the north.

“We have to put up with this (a 3.3 per cent rate increase) because if we don’t do anything, this place is going to go down at a fast rate,” she said.

“When you look at the future of this city, and the growth of this city, these programs (identified in the budget) really are important.”

Cr Kerrison agreed, saying it was a tough decision to increase rates by 3.3 per cent “but we are growing city and we need to grow”.

“We do need to look at the big picture though and take stock,” he said.

“We need to take into consideration the impact on our community with any rate increase as it is being hit in all directions.”

Environment Minister David Speirs said it was up to each of South Australia’s 67 councils to decide how they would manage the levy moving forward.

Councillors voted 9-5 to increase the rate by 3.3 per cent, rather than 3.9 per cent which went out for community consultation as part of the budget process.

The rate increases at Playford and Onkaparinga follow similar decisions by Salisbury, Tea Tree Gully, Unley and Charles Sturt to lift their rates higher than planned because of the rubbish tax hike.

Salisbury and Charles Sturt elected members voted to enclose pamphlets with their rate notices explaining the increases had been caused by the government’s decision to increase the Solid Waste Levy.

Environment Minister David Speirs said it was up to each of South Australia’s 67 councils to decide how they would manage the levy moving forward.

“Some councils such as Tea Tee Gully will pass on minor rate rises where others such as Holdfast Bay will absorb costs, which I commend,” he said.

Mr Speirs said Salisbury councillors had ignored advice “from their own administration to use a large operating surplus to pay for the levy and have instead chosen to increase rates”.

“Instead of using the levy as an excuse to raise rates and wasting more money on pamphlets, I suggest local councils work with the State Government to improve their waste management and resource recovery and reduce costs,” he said.

“The impact on households if the Solid Waste Levy is passed on in full will be on average just under an $8 increase for the upcoming financial year which is roughly 15 cents per week.”