Mosman and North Sydney ratepayers will be slugged with increases, after Councils blamed “high inflation and global uncertainty” for the rising cost of services.
The Independent Pricing and Regulatory Tribunal (IPART) this week approved applications by 86 NSW Councils to hike their yearly fees above the level of the annual rate peg.
It described the increases as “modest”.
Residents will pay more for Council rates.
IPART has given the green light to Mosman and North Sydney LGAs, to impose rate rises of 2.30% and 2.00% respectively.
In a nutshell, it means 12,840 residential ratepayers in Mosman, will fork out an average $1, 494 per annum for 2022-23. And, in North Sydney, home-owners will pay around $957.
The rate pegging limit, calculated at the time of low inflation, was previously just 0.70% for Mosman and 0.90% for North Sydney.
Mosman Council will make an extra $1.8 million over the next 5 years.
“The modest increases were approved following an additional special variation process,” Tribunal member Deborah Cope said.
“Since then, high inflation and global uncertainty increased councils’ costs.
“Some councils have demonstrated that without any additional funds they will not be able to deliver the projects they have already consulted on and included in their budgets.”
In Mosman, the IPART decision will see Council lift its income by 1.6% above the rate peg, boosting its coffers by $340,000 in 2022-23.
“This allows Mosman Council and extra $1.8 million over the next 5 years,” IPART said.
The increases are “modest” according to IPART.
Mosman Mayor Carolyn Corrigan told Mosman Collective the rate rise will amount to an average $25.63 per year, or 0.49c per week.
The increase, she said, follows an initial decision to cap rate rises at 0.70%, which “was the lowest base line rate cap in more than two decades, despite surging inflation and soaring fuel and commodity prices.”
Local businesses will now pay an average $3,209 in Council rates per annum.
“This is a 2.3% increase on last year and equates to less than half the CPI rise,” Mayor Corrigan said.
Mosman Mayor Carolyn Corrigan told Mosman Collective the rate rise will amount to an average $25.63 per year.
Over in North Sydney LGA, the 2.0% rate rise will see Council increase its income by 1.1% above the peg, delivering $570,000 in extra cash for 2022/23.
“This will allow North Sydney Council an extra $3 million over the next 5 years,” IPART said.
But the extra revenue should not be seen as a rate rise, North Sydney Mayor Zoe Baker told Mosman Collective.
“It is a rate peg increase to help councils meet the higher costs that come with high inflation,” she said.
“Like everyone else, we are facing increased costs for materials and contractors. While the IPART increase won’t fully cover these costs, it will help us manage our budget and deliver the projects we have committed to for the coming year.”
North Sydney Mayor Zoe Baker said the increases should not be considered a “rate rise”.
Mayor Baker said the additional charge is consistent with the rate peg level (2%) predicted in Council’s long term financial plan.
“With the Reserve Bank of Australia predicting 4.75 per cent inflation for the rest of 2022, Council will be keeping a close eye on our budget to ensure we remain financially sustainable,” she said.