Council Rates Could Increase

 Local Councils will be able to increase the revenue they can collect from rates by a maximum of 2.0% in the 2021-22 financial year, with the rate peg announced today by the Independent Pricing and Regulatory Tribunal.

 

Tribunal Member Deborah Cope says that in setting the rate peg for 2021‑22, IPART has recognised that councils face higher costs for their 2021 local government elections.

 

IPART’s rate peg is based on the annual change in the Local Government Cost Index which measures the average costs faced by NSW councils.  The rate peg reflects moderate price inflation over the previous year for most cost categories.

 

The peg represents the maximum percentage amount by which a council may increase its general income.  For almost all councils, general income consists entirely of revenue from rates.  

 

Councils have discretion to increase general income by the rate peg, less than the rate peg, or not at all.