NSW council rates: IPART approves income increases for multiple councils

Seventeen councils across NSW are set for council rate hikes, after applications for special rate variations were approved by IPART.

Tens of thousands of people could soon be hit with an increase in council rates, after the Independent Pricing and Regulatory Tribunal (IPART) approved applications from 17 councils for special rate variations.

Seventeen councils across the state, including Woollahra, Strathfield, Hornsby, Tweed, Junee and Bega, submitted an application earlier this year to increase its rate peg in order to better meet the needs of their communities.

IPART chair Carmel Donnelly said certain criteria set by the Office of Local Government had to be met for council’s applications to be approved.

“We considered everything raised in submissions including the impact of rates increases on ratepayers given current cost of living pressures,” she said.

Criteria needed to be met includes council’s demonstrating a need for higher income, council’s providing evidence their communities are aware of the need for rate rises, explain council’s productivity and cost containment actions and plans, and establish the impact on affected ratepayers is reasonable.

Ms Donnelly said IPART had received more than 1800 submissions from the community about the special variation applications, including from people who raised “broader issues about the financial model for councils”.

After assessing all 17 applications, IPART approved 14 and partially approved three (meaning their rate rises will be temporary).

Council rates are set to rise in 17 NSW local government areas.

The councils set to have their income increased as a result of the special variations application approval, include Armidale, Bega, Bellingen, Canada Bay, Federation Council (partially approved), Hornsby, Junee, Lithgow, Liverpool, Port Stephens, Queanbeyan, Snowy Monaro (partially approved), Strathfield, Tenterfield (partially approved), Tweed, Walcha and Woollahra.

Will you be affected by the rate rise?

Ms Donnelly said the impact on the community if councils were unable to deliver services was also considered.

“The tribunal questions whether this year’s large special variation applications reinforce IPART’s recent call for the NSW Government to consider commissioning an independent investigation of the financial model for councils,” she said.

“The independent investigation suggested by IPART could examine why some councils have decided the only way to address financial sustainability is through seeking substantial increases to rates income, and could also review the current special variation guidelines, criteria and process.”

The next step following IPART’s decisions on the rate peg and the special variations is for councils across NSW to decide how to set rates.

The IPART decisions determine the maximum amount by which each of the 17 councils can increase their council rates income.