By ANNA USHER

North Sydney Council has welcomed IPART’s approval of a permanent 52.66 per cent rate rise and says it will “proceed with implementing its financial sustainability pathway”, while North Shore MP Felicity Wilson urges councillors to reject the increase, warning the community has delivered “an overwhelming verdict” against it.

Mayor Zoë Baker called the decision “an important step towards restoring Council’s long-term financial sustainability”.

“This approval is an important step towards restoring Council’s long-term financial sustainability and ensuring we can continue to provide the infrastructure, services and public spaces our community relies upon,” Mayor Baker said.

But IPART’s approval is not the final word. Councillors must still formally vote on whether to apply the increase in full, reduce it, or reject it entirely.

That vote has not yet been held.

Wilson is “deeply disappointed” and is calling on councillors to push back.

“This is not the end of the road,” Wilson said. “86% of residents who made submissions to IPART opposed this rate rise. That is an overwhelming verdict from our community, and it should have been heard.”

“I will be making clear to Council that the community has spoken and implore Councillors to take that into account as they make this next decision,” she said.

What IPART approved

The decision, handed down on Tuesday, clears the way for average residential rates to jump 23.3% from July 2026, a further 14.2% in July 2027 and 8.2% in July 2028 – a cumulative 52.3% hit. Business rates rise a cumulative 53.2%.

Unlike a standard rate peg, the approved increase is permanent, meaning it will not roll back at the end of the three-year period but will remain in the rates base indefinitely.

North Sydney Council’s general income will rise from $64.86 million to $99.01 million. The $34.2 million in cumulative additional income stays permanently in the rates base.

What you’ll pay

By 2028-29, the average residential ratepayer will be paying around $563 more per year.

Business owners face a steeper hit: an extra $3,830 annually, a cumulative 53.2% rise.

Minimum rates (paid by many apartment and strata property owners) would nearly double.

The current minimum of $743.85 rises to $970.72 next financial year, $1,116.32 in 2027-28 and $1,216.79 by 2028-29.

North Sydney services 40,778 rateable properties, including 37,347 residential and 3,431 business ratepayers.

86% said no

IPART received 1,047 responses to its feedback form during the consultation period from 17 February to 9 March 2026. Of those, 893 (86%) opposed the proposed rate variation. Just 77 supported it. A further 251 written submissions were lodged.

IPART’s own analysis found 84% of feedback form respondents said the council had not been effectively managing its budget. 86% disagreed with the size of the increase. 64% said cost of living pressures were too high to absorb a rate rise at all.

Around 89% of respondents disagreed or strongly disagreed that the proposed increase was affordable. Around 85% disagreed that the council had even considered community feedback in its decision-making.

During the consultation, ratepayers formally requested a public hearing. It was denied.

Wilson said the economic environment had deteriorated sharply since the council lodged its application. She cited the war in Iran pushing up prices across the economy and said North Sydney families had absorbed three interest rate rises since the SRV was first proposed.

“Households have faced new and serious pressures with the rising cost of living,” Wilson said. “Families have absorbed three interest rate rises. Household budgets are under genuine strain.”

“Council should be tightening their belts – just like the people they represent,” she said.

Council says it will now update its Long-Term Financial Plan and Delivery Program to reflect IPART’s determination. The formal council vote on whether to levy the full approved increase – and how to distribute it across rating categories – has not yet been held.

Wilson is urging residents to keep the pressure on. “Your voice still matters – and our elected representatives should listen to our community,” she said.