As NSW councils face increased costs delivering services, rates are set to rise after the regulator approved increases, with the largest hikes reserved for councils experiencing a population surge.
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The Independent Pricing And Regulatory Tribunal (IPART) has set the 2023-24 base rate peg at 3.7 per cent for most councils but green lit an increase of up to 6.8 per cent for Camden Council, a growth area southwest of Sydney.
The rate peg limits the total amount councils can increase rates each year to protect ratepayers from excessive increases.
"Higher inflation means that councils are facing increased costs in delivering services to the communities they serve," IPART Chair Carmel Donnelly said in a statement on Thursday.
"We have taken these increased costs into consideration while also trying to limit the level of rate increases that ratepayers are facing," she said.
IPART does not set the actual rates that households and businesses pay - that decision is made by individual councils.
Councils must ensure any increase stays within the rate peg limit.
IPART is reviewing the methodology it will use to set the rate peg from 2024-25 and is calling for public submissions until November 4.
"We will be looking at new approaches to setting the rate peg that reflect, as far as possible, changes in inflation and local government costs, while continuing to protect ratepayers from excessive rate increases," Ms Donnelly said.
Australian Associated Press
