March 1 - 31, 2025: Issue 640

 

IPART Consult on NBC SRV Now Open: Closes March 17, 2025

At its meeting on 28 January 2025 Northern Beaches Council passed a motion to apply to the Independent Pricing & Regulatory Tribunal (IPART) for a Special Rate Variation.

The Councillors could only vote for or against Option 3 although four options were set out in the Have Your Say documents which were presented to residents by way of consultation and giving them opportunity to express their opinions. Option 3 will allow, by the end of three years, an increase of 39% on residential and business rates. This includes the IPART component which would automatically apply if no vote were taken by Councillors.

On Tuesday February 25 2025 IPART Chair Carmel Donnelly said the Tribunal is now seeking community feedback on applications from Federation, Gunnedah Shire, Northern Beaches, North Sydney, Shoalhaven City and Upper Hunter Shire councils. Gunnedah Shire and North Sydney councils had also applied for minimum rate increases.

“Community feedback is an important part of the Tribunal’s assessment of special variation applications,” Ms Donnelly said.

"We encourage affected ratepayers and community members to fill out the survey on the IPART website or lodge a submission in relation to any of the applications we’ve received.”

IPART sets a rate peg annually for each of the 128 councils in NSW which caps each council’s increase in the income they collect from ordinary rates. For 2025-26, the core rate pegs range from 3.6% to 5.1% across NSW. 72 of the 128 councils also received an additional allowance to reflect an adjusted population factor of up to 3.8%.

In general, the councils that have applied this year have indicated they are applying for a special variation to improve financial sustainability and to maintain their current service levels, IPART states.

Ms Donnelly said “IPART must assess Special Variation applications against criteria set by the Office of Local Government (OLG). Councils can only apply to IPART for a Special Variation if the elected councillors pass a resolution to go ahead with the application.”

As set out in the OLG assessment criteria, IPART will consider whether councils have:

  • demonstrated the need for the additional income
  • provided evidence that the community is aware of the need for and extent of the proposed rate rise
  • established that the impact on affected ratepayers is reasonable
  • exhibited, approved and adopted relevant planning documents
  • explained and quantified the council’s productivity improvements and cost containment strategies.

IPART may also consider other relevant matters.

All Special Variation applications for 2025-26 are available for review on the IPART website, along with a short survey and information about how to lodge a submission. IPART will accept feedback on Special Variation applications until 11:59pm on Monday 17 March 2025.

The documents lodged by the  Northern Beaches council are available to view at: www.ipart.nsw.gov.au/node/1726

To fill out the IPART Survey or lodge a submission, go to: www.ipart.nsw.gov.au/Special-Variations-and-Minimum-Rates-2025-26 - and click on the 'Have Your Say' link, then choose 'Northern Beaches Council' from the dropdown menu.

IPART's Fact Sheet explains more about how to make a submission on a special variation application. It also explains some factors that are outside IPART’s remit in assessing applications but have been common concerns of ratepayers.

You can also subscribe to receive email updates about the Special Variations process for 2025-26 subscribe here.

IPART does not hold public hearings when assessing council applications for special rate variations (SRVs). 

IPART can wholly or partially approve or not approve a council’s application.

IPART will release the final decisions on Special Variation and Minimum Rate increase applications by May/June 2025.

In an update to last week's report, 'Outraged Pittwater Community Fights To Stop Rising Costs Of Failed Merger; Renews Call To Reinstate Pittwater Council', members of Protect Pittwater, the community group working to have Pittwater Council reinstated, advised the news service on Friday February 28 they have heard back from the Office of NSW Minister for Local Government, The Hon. Ron Hoenig, and a meeting will take place in the third week of March 2025.