The OLG has agreed to an IPART request for an extension in delivering their final report into the rate peg methodology to 31 August 2023.
This will have the effect of pushing any proposed reforms to 2024-25 (at the earliest).
Of particular interest is the following from the IPART website:
Following publication of the workshop summary, we received feedback from some ratepayers about the extent to which the concerns they raised at the workshops had been reflected in the ‘workshop summary’ factsheet. These concerns included:
- if the NSW Local Government (State) Award is used to measure changes in labour costs this would reduce councils’ incentives to control labour costs as increases in labour costs would be passed through to ratepayers
- the inclusion of prison populations in the residential population when calculating population growth results in a higher rate peg and rating burden for ratepayers in council areas with prisons, particularly for council areas with new prisons
- the affordability of rates for ratepayers, noting some ratepayers are on a fixed income and would prefer rate increases to be more aligned with CPI
- the importance of incentivising council productivity to mitigate increases in costs and rates.
Ratepayer views are an important consideration in this review, and we are taking into account feedback received from all stakeholders in developing our draft recommendations.
Regards,
Andrew
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