COUNCIL rate increases will be capped at 2.3per cent in 2014-2015 under a decision on the annual rate peg announced on Monday by the Independent Pricing and Regulatory Tribunal (IPART).
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The rate peg sets the maximum increase of 2.3 per cent, slightly below inflation, to apply to general income collected by NSW councils.
The main component of general income is rates revenue but it also includes some annual user charges. It excludes stormwater, waste collection, water and sewerage charges.
If a council decides to increase residential rates in line with the rate peg, it would mean an additional $20 for the year, or slightly less than 40 cents per week, for the average household. The average residential rate assessment in NSW will be around $910 in 2014-2015.
This year’s rate peg, down from 3.4 per cent in 2013-2014, reflected the lowest rise in public sector wage costs in a decade, along with the final adjustment of the carbon price advance, which was included in the rate peg in 2012-2013.
Councils intending to apply for a special variation to address financial sustainability, infrastructure backlogs or increasing demand for services are required to advise IPART of their intention to apply by December 13.
