Clarification on IPART rate peg
Published on 30 September 2022
The Independent Pricing and Regulatory Tribunal (IPART) announced yesterday that the rate peg for the 2023/24 financial year would be set at a baseline of 3.7% for Councils across NSW.
This means, for Broken Hill City Council, 3.7% will be the maximum increase it may set across general income the 2023/24 financial year and does not necessarily correspond to an individual’s rates.
Mayor Tom Kennedy said that the recent announcement by IPART and how it has been reported across various media outlets, has caused undue concern amongst the residents of Broken Hill that another rate rise is set for the near future.
“Any potential further rate rise will not occur until July 2023, and what the particular rate rise will be, is determined by a budgetary process to be undertaken early next year, in consultation with the community” Mayor Kennedy said.
Council’s General Manager Jay Nankivell said that staff will commence the budgetary process for the 2023/24 financial year early 2023 in consultation with Councillors and the community.
The budgetary process will take into account the rising cost of services Council is experiencing, service levels the community expects and deserves, and the community’s ability to pay given the rising cost of living pressures being experienced. This process along with other revenue generating opportunities will ultimately inform the setting of rates across the City.
“Most importantly, we will be ensuring that the residents and businesses of Broken Hill have the ability to pay in accordance with the expected service delivery of Council, and that Council is not unduly adding to the cost of living pressures currently being experienced across the City” Mayor Kennedy added.
“Furthermore, as stated earlier this year, this Council will not be proposing any rate rises above inflation or what the community can afford. It will be a balancing act between what the community wish to pay in rates and the services that the community expects.”
Council will commence community consultation around the 2023/24 budget process in April 2023.