What are Special Variations and Minimum Rates?
Every year IPART sets a rate peg for each council in NSW which is the maximum amount by which councils can increase the general income that they collect from ratepayers (rates income).
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 amount. Council requests for Special Variations are often to develop or maintain essential community services and infrastructure.
A council can also set a minimum rate for each of its rating categories, and can apply to increase minimum rate levels above the statutory limit. Minimum rates ensure that ratepayers with lower land values (such as apartments) contribute a certain amount towards community services and infrastructure.
You can find answers to some frequently asked questions in the below factsheets:
- Frequently asked questions - Special Variations
- Frequently asked questions - rates, fees and charges and land valuations
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.
How special variation applications are assessed
IPART assesses Special Variation applications against criteria set by the Office of Local Government. These criteria require councils to:
- demonstrate a financial need for additional revenue
- provide evidence that the community is aware of the need for and extent of a rate rise
- demonstrate a reasonable impact on ratepayers
- exhibit relevant council documents to the public; and
- explain council’s productivity improvements and cost containment strategies
In addition, we will assess any other information we consider relevant, including submissions from ratepayers. Further information regarding the assessment criteria can be accessed here.
IPART can wholly or partially approve or reject a council’s application. Decisions from the Tribunal will be announced around May 2025. Our reasons will be published on our website. The 2024-25 special variation decisions are available here.
How can a council apply for a Special Variation or Minimum Rate increase?
We encourage councils to engage with IPART as early as possible if they are thinking about applying for a Special Variation, to express their intention to apply or to clarify any questions on the application process.
We have also published a Guidance Booklet that explains how to prepare an SV application for 2025-26.
To apply, councils will need to complete:
- the ‘Part A’ application form (Excel) for Special Variation and/or Minimum Rate Increases.
- one, or both ‘Part B’ (word document) application forms depending on the application type/s: Special Variation or Minimum Rate increases.
More information is available here.