Blue Mountains City Council




 

Rate Pegging

For many years now, NSW State Government legislation has limited annual increases to rates revenue for all NSW councils. This is known as “rate pegging” and NSW is the only Australian state to have it.


Each year, on behalf of the NSW State Government, IPART determines the annual percentage increase that councils can apply to their previous year’s rates revenue. For 2017-2018 the rate peg increase was 1.5%.


As the rate peg applies to the Council’s total rates revenue, and not to the rates of an individual property, rates on an individual property may not increase by exactly the rate peg. In other words, your rates for 2014-2015 may not be exactly 2.3% higher than rates for this year.


The actual amount of rates that you will pay is also dependant on factors such as the total number of rateable properties for the year and the land valuation that has been assessed for the property. The waste management service that is provided to the property will also affect the amount of rates that are paid.

 

In December 2014, the Independent Pricing and Regulatory Tribunal of NSW (IPART) announced the permissible increase to the 2015-2016 revenue of 2.4% (known as the rate peg) in the terms of Section 506 of the Local
Government Act, 1993 for the rating year commencing 1 July 2015.

In 2014 the Council engaged community on three options for Resourcing Our Future. Considering the outcomes  of this engagement, the Council resolved to proceed with Option 1: Service Levels Improved and apply to the Independent Pricing and Regulatory Tribunal (IPART) for a special rate variation.

The Independent Pricing and Regulatory Tribunal (IPART) announced on 19 May 2015 that it had approved, in full, the Council’s application unders508A of the Local Government Act, 1993 for a special variation to rates over the four years from 2015-2016 to 2018-2019. The Council then endorsed the special rate variation at the Extraordinary Council Meeting of 2 June 2015 (Minute No. 558).

A table outlining the percentage increases is included below.


IPART’s decision on Blue Mountains City Council’s application for a special variation in 2015-16

Year

2015-16

2016-17

2017-18

2018-19

% increase approved

6.6

9.6

9.6

9.6

 

The actual amount of rates that you will pay is also dependent on factors such as the total number of rateable properties for the year and the land valuation that has been assessed for the property. The domestic waste service that is provided to the property will also affect the amount of rates that are paid.

 


Rating Terminology


Assessment: The rates and charges applied to an individual, rateable parcel of land.
Ad Valorem: 'In proportion to the value'. In rating, the ad valorem amount is calculated as the number of cents charged for every dollar of unimproved land value.
Arrears: Amounts not paid by the due dates which are carried over to the next payment period. Delayed payment attracts a daily interest charge calculated at the rate of 7.5% per annum.
Minimum rate: The minimum amount of rates payable on any assessment. Minimum rates are applicable when the value of the property, once multiplied by the ad valorem amount, ends up being less than or equal to the actual minimum charge.