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.
The Special Rate Variation Project 24-25 was subject to a rigorous assessment by IPART following submission in February 2025. Council welcomed the decision by (IPART) to approve its application for a Special Rate Variation (SRV) of a permanent 69.94% increase to general rates over two years. It is important to note that the above increase effectively includes the temporary increases of 19% applied in 2023/24 and 17% in 2024/25, inclusive of the ordinary maximum rate peg increases allowable, in those years and further increases to be applied subject to Council endorsement, of 19% for 2025/26 and 11.8% in 2026/27, including ordinary maximum rate peg increases allowable for those years.
Council encourages interested residents to visit the IPART website for further information on the Special Variation process.
What is the overall purpose of a Special Variation?
- Improve Council’s Financial Sustainability;
- Fund the ongoing operation, maintenance and renewal of Council assets;
- Maintain service levels as close as possible to current levels to meet community expectations; and
- Manage a range of financial impacts including additional costs for maintenance and renewal of assets, rising material costs and inflation.