What is a Special Rate Variation?

A Special Rate Variation (SRV) allows a council to increase its general income above the rate peg, under the provisions of the Local Government Act 1993 (NSW).

SRVs can be for one or several years, and can be temporary or permanently retained in the rates base.

Each year, councils wishing to apply for an SRV, apply to IPART in February. The applications are assessed against criteria listed in the Office of Local Government’s Guidelines. These include undertaking long term financial planning, ensuring community awareness of the need and extent of the proposed increase in rates, and consideration of the impact on ratepayers and the community’s capacity and willingness to pay. In addition, councils must meet criteria related to productivity improvements.

At its June 2022 meeting, Council unanimously supported scenario one within the LTFP which contains the four-year SRV.

In the LLTFP, Council adopted a scenario that provides a $48 million annual operating program and $18.6m capital program for 2022/23 and a $104m total capital program over the 10 years. It contains rate increases at 2.5% for 2022/23, followed by a special rate variation for four years from 2023/24 to 2026/27 being 19%, 17%, 14% & 10%.

Council staff will continue their work on collating the required data to form the SRV application to IPART. This will likely be presented to Council by the end of 2022, to seek a formal resolution to proceed with lodging the application to IPART in February 2023. It is anticipated that Council would be notified of the decision in May 2023.

The SRV increase proposed will be subject to an application to and approval by IPART and involve further community engagement opportunities for ratepayers when the application is on exhibition by IPART.  This is expected to be in early to mid-2023.  IPART make their determination around May 2023.  Council will extensively communicate these opportunities to provide submissions to IPART when the application is lodged.

Interested people should also ensure they stay engaged with Council during this process including via keeping up to date with Councils monthly meeting agenda items.

Council encourages interested residents to visit the IPART website for further information on the Special Rate Variation process.