Thursday, May 30, 2024

LGNSW welcomes ‘more realistic’ rate peg methodology

NSW councils have welcomed IPART’s rate peg announcement for the next financial year, applauding the use of new “more realistic methodology” than in past years.

The core range for rate pegs will be 4.5% to 5.5%, but for those councils experiencing faster population growth, the peg will range up to 8.2%. 

Local Government NSW (LGNSW) President, Councillor Darriea Turley AM said the new process for determining the rate peg should ensure a greater level of financial sustainability for councils.

“Councils need to be able to pay for the services communities expect and deserve and this new rate peg methodology goes part way towards making that achievable,” President Turley said.

“Local Government NSW has been advocating for change for years and I’m confident that this will provide better outcomes for councils moving forward.” 

She said under the new methodology, rate pegs would be determined individually for each council.

Employee costs would now be based on the Local Government State Award as advocated by LGNSW and a 0.4% superannuation guarantee adjustment has been added, meaning that the new rate peg better reflects actual costs.

IPART has introduced an Emergency Services Levy (ESL) factor that reflects the annual change in each council’s ESL bill, which is payable to the NSW Government annually. IPART will also include an additional special adjustment factor to reflect the impact of the NSW Government discontinuing the ESL subsidy.

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