The Independent Pricing and Regulatory Tribunal (IPART) has set the 2023-24 base rate peg for NSW councils at 3.7 per cent, increasing the limit to further protect ratepayers from excessive increases in council rates.
Aside from the new base rate peg, the IPART also made an allowance for the level of population growth per area, meaning that some NSW councils will have rate pegs of up to 6.8 per cent.
The rate peg varies from the base level of 3.7 per cent for most NSW councils, with the Camden Council’s rate peg reaching up to 6.8 per cent.
This increase with the NSW councils’ base rate peg will help limit the total amount by which councils can increase their general income from rates each year.
“Higher inflation means that councils are facing increased costs in delivering services to the communities they serve,” IPART Chair Carmel Donnelly said.
“We have taken these increased costs into consideration while also trying to limit the level of rate increases that ratepayers are facing.”
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IPART does not set the actual rates that households and businesses pay, which is a decision made for by councils and their communities. However, councils must set those rates to ensure that the change in total rates income stays below the limit.
IPART is currently reviewing the methodology it will use to set the rate peg from 2024-25, and is now calling for public submissions to the Issues Paper which is available on IPART’s website. Submissions will be open until 4 November 2022.
“We will be looking at new approaches to setting the rate peg that reflects, as far as possible, changes in inflation and local government costs while continuing to protect ratepayers from excessive rate increases,” Ms Donnelly said.
IPART will also be consulting with stakeholders during workshops in November. A Draft Report will be released in February 2023 setting out our draft findings and recommendations. IPART will also take further submissions on the Draft Report and hold a public hearing early next year, most likely in March 2023.