IPART has approved applications by eighty six NSW councils to increase their rates above the level of the annual rate peg.
The modest increases were approved following an additional special variation process.
“The latest rate peg was determined in the low inflation environment at the beginning of the COVID-19 pandemic.
“Since then, high inflation and global uncertainty increased councils’ costs. Some councils have demonstrated that without additional funds they will not be able to deliver the projects they have already consulted on and included in their budgets,” says Tribunal member Deborah Cope.
The modest increases for councils are between 1.6% and 2.5% including the rate peg, each year IPART calculates a rate peg which sets how much councils can increase the revenue they collect from rates.
Wollongong City Council will increase their rates by 1.8 percent, while Kiama Council will increase theirs by 2.5 percent.
IPART advises that Kiama Municipal Council applied for, and was approved for a 'temporary additional special variation', all other additional special variations are permanent which allows the council to keep the additional income in its rate base going forward.
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