IPART Decisions on Council Special Variation Applications
IPART has now assessed the 9 special variation applications in accordance with the Office of Local Government guidelines. Based on compliance with the required criteria, the Tribunal has approved 5 of the applications received earlier this year, approved a lower increase for 3 of the applications and declined one application.
Two of the applications were combined with minimum rate increase applications. The Tribunal approved one of these applications and approved a lower increase for the other. The Tribunal’s final decisions are explained in the video below. Our Media Release also contains a summary of the decisions for each council.
Assessment criteria
IPART assesses special variation applications against criteria set by the Office of Local Government. These criteria require councils to:
- demonstrate the need for the additional revenue
- provide evidence that the community is aware of the need for and extent of a rate rise
- exhibit relevant planning documents
- explain council’s productivity and cost containment actions and plans; and
- establish that the impact on affected ratepayers is reasonable.
IPART may also consider other relevant matters.
Rate peg and special variations
Every year IPART decides a rate peg for each council in NSW which sets the maximum amount councils can increase the general income they collect from ratepayers (rates income). IPART set the rate peg for 2024-25 using our new rate peg methodology. The core rate peg for the 2024-25 financial year for each council ranges from 4.5% to 5.5%. There is also an allowance for population growth, meaning some councils have rate pegs up to 8.2%.
If the elected councillors agree that a council needs additional revenue, the council can apply to IPART for a special variation to increase rates income by more than the rate peg. In February this year, 9 councils applied for increases in rates income above the rate peg through special variations.
Conditions for the approved special variations
The conditions for the councils’ special variation approvals include spending the additional income on the specific purposes outlined in each of their applications. They will also be required to report to the community about how their additional revenues are spent.
Minimum rate increase approval
We have also fully approved Narrandera Shire Council’s minimum rate increase application, and approved Goulburn Mulwaree Council’s minimum rate increase application for one year only. The minimum rates increase alone will not change the council’s overall general income.
Accessing our decision, the council’s completed application and submissions
Our special variation and minimum rate increase determination reports, instruments (for councils that were approved a special variation or minimum rate increase) and councils’ completed application materials can be accessed by clicking on the council’s name in the table below.
You can also access non-confidential submissions by going to the same table and then clicking on the word Submissions in the row of the council you are interested in.