[Anthony Egan]

Hi Matt

Likewise, totally agree with what has been mentioned above.

However, as advised in IPARTs Rate pegs for NSW councils for 2025-26 Information Paper, “Councils can increase their general income by up to the rate peg. They may decide to increase their general income by less than the rate peg (or reduce their income) and consult with their communities on rates and service trade-offs that may be needed. If a council increases its rates income by less than the rate peg, it has up to 10 years to catch up this shortfall. A council can only increase its general income by more than the rate peg, if it has an approved special variation (SV) or is catching up on previously foregone increases.”

Note, the catch-up provision is specified in section 511 of the Local Government Act 1993.

The Information Paper also states, “We understand some stakeholders do not agree with councils increasing their income, for various reasons. However, not allowing income to increase in line with changes to their business-as-usual costs could have negative impacts on communities through trade-offs in the services ratepayers rely on.”

A very recent example of a Council not taking up its approved rate peg increase is Port Macquarie-Hastings Council which approved a 0.0 percent rate peg for the 2024/25 Operational Plan, rejecting a council staff recommendation of a 4.6 percent rate increase, despite “concern” from the Office of Local Government.

Suggest that you make contact with Port Macquarie-Hastings Council to see how they are dealing with this reduced income and its impact.

Regards
Anthony