Wednesday, February 25, 2026

Glen Innes 48.3% rate hike proposal reflects “difficult position” of state’s councils

Glen Innes Severn Council has submitted a Special Rate Variation (SRV) application to the Independent Pricing and Regulatory Tribunal (IPART), proposing a 48.3% increase to general rates phased over three years.

In a statement, the Council said it “acknowledges clearly and unequivocally that the community does not want a rate rise”.

“At the same time, the community has also been clear that it expects Council to maintain and improve essential services, renew ageing infrastructure, and protect the long-term viability of the region.”

It says the SRV application reflects the difficult position councils across NSW now face: “rising costs, growing service expectations, and a funding system that has not kept pace with reality”.

“Council’s financial modelling shows that without additional revenue, service levels, asset maintenance, and community facilities would continue to decline.”

Councillors endorsed the application following extensive engagement through the Shaping Tomorrow community consultation program.

Program feedback consistently highlighted a tension shared across regional NSW. Residents want affordable rates, but they also want safe roads, reliable water, community facilities, and essential services maintained to an acceptable standard, the Council states.

Mayor, Margot Davis said the SRV application reflected “a constrained choice rather than a preferred one”.

“Our community has been very clear, no one wants higher rates. Council doesn’t want them either. But we are being forced to make decisions in a system where costs are rising and funding from other levels of government has not kept pace,” Mayor Davis said.

“This SRV is not about expansion or extravagance. It is about protecting core services, maintaining essential infrastructure, and keeping this council financially viable into the future.”

Mayor Davis also emphasised that Council has been strongly advocating to reduce the need for SRVs altogether by pushing for systemic reform.

“Local government should not be placed in a position where the only option left is to increase rates. We have consistently called for Financial Assistance Grants to be restored to at least 1% of Commonwealth taxation revenue. If that funding were reinstated, it would significantly reduce – or even remove – the need for SRVs like this,” she said.

General Manager Bernard Smith said the application reflects a statewide issue, not a local failure.

“This is not a Glen Innes Severn-specific problem. Councils across NSW are confronting the same structural funding gap witnessed by the large number of councils who have been forced to apply for an SRV in order to be financially sustainable. Costs are rising faster than rate-pegging allows, assets are ageing, and responsibilities as well as expectations continue to grow,” Mr Smith said.

“Submitting an SRV is an unfortunate necessity resulting from the current system, but it is also a responsible step to ensure this community remains well-serviced, resilient, and sustainable over the long term,” he said.

Mayor Davis added that transparency remains central to Council’s approach.

“Our community rightly expects honesty and openness. IPART’s independent review, combined with the opportunity for residents to make submissions, ensures accountability at every step. This process is about balancing fairness today with responsibility for the future” she said.

IPART’s determination is expected in May/June, ahead of the 2026–27 financial year.

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