The peak body for all 128 local councils across New South Wales has acknowledged today’s announcement of increases to the limits on rate rises.
The NSW Independent Pricing and Regulatory Tribunal (IPART) has set core council rate pegs for the 2025-26 financial year, ranging from 3.6% to 5.1%.
Cr Darriea Turley AM, President of Local Government NSW (LGNSW), says the latest rate peg determination reflects further improvements to the new forward-looking methodology introduced for the 2024-25 financial year.
“We thank IPART for actively engaging with local government in reviewing and refining the new methodology, particularly through the establishment of the Council Reference Group” Cr Turley said.
“We acknowledge that times are tough for everyone right across our community, but the reality is that costs increase for councils just as they do for other businesses and services – the cost of bitumen increases, construction costs only go up and salaries quite rightly increase every year.
“Councils need to be able to lift their rates fairly and in accordance with the wishes – and needs – of their community; otherwise they go without, especially since we know councils continue to have more than $1.3 billion of State and Federal government costs shifted onto our communities each year amounting to about $460 per ratepayer across the state.
“IPART has made its determination. It will now be over to the newly elected councils to have those important discussions with their communities about what functions and levels of service they expect to see in councils’ 2025/26 Operational Plans and budgets and beyond.
“It’s worthwhile reminding the public that councils do have hardship provisions and pensioner concessions. Anyone who feels they may experience difficulties in paying their rates should always contact their council to discuss their situation.”
Some key outcomes from this year’s determination include:
- The increases exceed the current inflation rate (CPI) and also exceed forward CPI estimates expected to be in the 2-3% (RBA target range).
- The inclusion of an election factor to assist councils with the cost of the recent local government elections.
- Recognition of the additional cost pressures facing rural councils with a higher range compared to metropolitan and regional councils.
- The continuation of the Emergency Services Levy (ESL) factor to cover increases for councils and, in particular, the additional council-specific adjustment factor that reflects increases in ESL costs and to provide a catch-up on the loss of the government subsidy on transition to the new methodology.
Separate rate pegs have been determined for each of NSW’s 128 councils, with the rate for each individual council area included in the IPART information paper .
