Tribunal Approves 93% Rate Increase for NSW Residents

By REBECCA HERNANDEZ

Tenants across New South Wales face a rate increase of up to 93% as councils demand higher prices for everyday services.

The Independent Pricing and Regulatory Tribunal (IPART) announced Thursday, June 15, that 17 councils across the state had been approved to go beyond the set ‘rate peg’ –  “the maximum [annual] amount councils can increase the general income they collect from ratepayers.”

Where initially capped at 3.7% for the 2023-2024 period, with certain allowances to go up to 6.8% based on certain factors such as population growth, the newly announced changes would see the majority of approved councils increase rates by an average of 40%.

A Set Procedure

Sydney’s Strathfield Council seeks the largest bump, working to achieve a cumulative rate increase of almost 93% over four years, while residents of the Lithgow City Council region can expect the highest immediate jump, facing a one-off 46% price hike during the 2023-2024 period.

Discussing the decisions in a media release, the Tribunal elaborates on the process each council submission undergoes to receive approval – highlighting a largely set and impartial procedure.

“IPART is required to assess special variation applications against criteria set by the Office of Loca; Government,” it states.

“[It] requires councils to demonstrate the need for the additional revenue, provide evidence that the community is aware of the need for and extent of a rate rise, exhibit relevant planning documents, explain council’s productivity and cost containment actions and plans, and establish that the impact on affected ratepayers is reasonable.”

Greater Pressure

IPART Chair Carmel Donnelly continues, acknowledging the emergent concerns of the community, and particularly the financial pressure it puts on ratepayers.

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

“We also received over 1800 submissions about these 17 special variation applications, including from people who raised broader issues about the financial model for councils.”

She ultimately concludes by directing individuals and councils towards one another, encouraging greater cooperation and communication between the two.

“We encourage councils to consult with the community to decide how best to implement the allowed increase, noting that elected councillors can choose how they set council’s rates, including deferring any increases for up to 10 years and how they set rates across the rating categories,” she said.