Regulator seeks community feedback as North Sydney Council applies for 87.05% rate hike.

By ANNA USHER

The Independent Pricing and Regulatory Tribunal (IPART) is now seeking community feedback on North Sydney Council’s application to jack up rates by 87.05% over two years.

Consultation will close on Monday 17 March.

In February, Council voted 7-3 in favour of a Special Rates Variation (SRV) to be implemented in two stages, a 45% increase in 2025-26, and a 29% increase the following year.

If approved by the regulator, residential rates will more than double from the current $715 per year to $1,548 by mid-2026.

Business rates will also increase substantially, rising from $715 to $1,806 during the same period.

IPART Chair Carmel Donnelly said the Tribunal is now seeking submissions on North Sydney Council’s application.

“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 the state.

In its application, North Sydney Council said the key purpose of the massive rate hike was to improve “financial sustainability” and to “improve the equity between those on the minimum rate and those on the ad-valorem.”

“Without an increase to rates revenue, Council has an unsustainable financial future,” the submitted document reads.

“Of the 36,871 residential assessments in the LGA, 77.26% of ratepayers currently pay the minimum rate. This is primarily due to the high density within the area and the practice of levying rates based on unimproved land values.”

With an estimate 20% increase in population growth by 2036, Council said future housing growth is primarily expected to come from new apartment developments.

“If these new apartments pay the minimum rate of (currently) $715, this does not reflect the additional cost to Council of the increased infrastructure and services required to them.”

Council did admit that while the majority of residents were ranked in the top socio-economic scores nationwide, there were some who would experience financial stress with any rate increase.

“The drawbacks are that some minimum ratepayers may be considered to have a lower capacity to pay,” Council said in its submission.

“There is significant advantage across the LGA, with some slightly increased disadvantage within the suburb of Kirribilli, although this is still much lower than Greater Sydney averages and the level of advantage within this suburb is still in the top 2% of suburbs across Australia.”

If you are concerned about Council’s rate rise application, the best way to ensure your voice is heard is by sharing your views with IPART.

How to make a submission

You can make a submission in writing or, if you need assistance, by phone to an IPART staff member. You can write via the have your say page before March 17.

Emails, with a completed cover sheet, can be sent to [email protected] or mailed to PO Box K35, Haymarket Post Shop, NSW, 1240.

What to include in your submission

Your submission should tell IPART your views and the reasons for those views, including any information or evidence to support them. There is additional guidance available on what to address in submissions for some matters, such as local government special rate variations, on the IPART website.

Read North Sydney Council’s IPART proposal HERE

Full SRV submission fact sheet HERE

Complete the IPART survey HERE

Make your submission HERE