2025-26 Special Variation and Minimum Rate Applications
Local councils seeking a special variation to general income above the rate peg amount, or to increase minimum rate levels above the statutory limit, are required to submit applications to IPART for assessment.
Councils should contact IPART to discuss their application as early as possible in the process.
There are 2 special variation options under the Local Government Act:
- a single year increase under section 508(2), or
- a multi-year increase (of between 2 and 7 years) under section 508A.
Special variation and minimum rate increase applications should be submitted through IPART's Local Government Council Portal. You can find various User Guides on the IPART website detailed instructions on how to use the Council Portal.
OLG Guidelines
While IPART has been delegated responsibility for assessing and determining SV and MR increases, the Government has retained responsibility for setting the policy framework under which applications will be assessed.
Councils applying for an SV and/or MR increase must comply with the requirements set out by the OLG:
- SV – OLG Guidelines for preparation of an application for a special variation to general income
- MR Increase – OLG Guidelines for preparation of an application to increase minimum rates above the statutory limit
IPART Guidance materials
This year we have published a single guidance booklet that explains how to prepare an SV application - Special Variations: How to prepare and apply (‘booklet').
Previously, we published an information paper about community awareness and engagement for the SV and MR increase process. This information is now provided in section 4 of the booklet.
For minimum rates increase applications, guidance is provided in the Part A and Part B application forms, but you may also wish to review the booklet for certain information (such as section 4).
See past special variation and minimum rate increase applications and determinations.
Notification Letters
The OLG Guidelines urge councils to inform IPART if they intend to apply for a special variation. Councils intending to apply for a special variation or minimum rate increase are urged to notify IPART of their intention to apply by 29 November 2024 via our Council Portal.
Notification Letters to IPART should include:
- the size of the intended special variation (percentage) or the minimum rate (dollar amount)
- the purpose of the funds for the special variation, and
- contact details for the application.
Application Forms
Application forms for 2025-26 are available:
- SV and/or MR Increase - Part A (A combined SV and MR Increase application is covered by a single Part A application form).
- Special Variation (SV) - Part B
- Minimum Rate (MR) Increase - Part B
Timeline
Below is an indicative timeline for the special variation and minimum rate increase applications for 2025-26.
| Outcome | Date |
|---|---|
| Notification of council's intention to apply for a special variation or minimum rates increase due |
29 November 2024 |
| Special Variation applications due | 3 February 2025 |
| Minimum Rate Variation applications due | 3 February 2025 |
| Determinations announced for Special Variation and Minimum Rate Variations | May or June 2025 |
Assumed rate peg for 2025-26 and future years
Special variation applications
Councils applying for a special variation in 2025-26 should use the 2025‑26 rate peg set by IPART in their applications. This will be released around September 2024. The OLG Guidelines advise that an assumed rate peg of 2.5% should be used for 2026‑27 and future years . If a council elects to use a different assumed rate peg percentage, the rationale for doing so must be explained in its Part B application form.
Long term financial plan reviews and updates
We encourage councils that are updating or reviewing their Long Term Financial Plans to refer to the Office of Local Government’s Integrated Planning and Reporting Handbook for local government in NSW, and seek advice from the Office of Local Government where necessary to determine their revenue forecasts for rates and charges for future years.
How can the community engage with IPART?
Is your council talking about a special variation?
A council must actively engage with its ratepayers if it is thinking about applying for a special variation. This process starts before the council makes an application and some councils may already have started.
We encourage ratepayers to provide their feedback to their council during the council’s consultation process. Please take a look at our fact sheet to help you understand and guide you through this process.
How can you engage with IPART?
After we receive applications from councils in February 2025, IPART will open a public consultation process. You will be able to view and provide feedback on the councils’ applications.
We will soon publish a fact sheet with more information on how you can engage with IPART in the 2025-26 Special Variations process. In the meantime, please refer to our fact sheet from 2024-25.
You can subscribe to receive email updates about the special variations process for 2025-26 including when the consultation period opens. You can subscribe here.
Enquiries
Any enquiries regarding special variation or minimum rate applications should be directed to Daniel Suh by email to daniel.suh@ipart.nsw.gov.au or by phone on (02) 9019 1975.