BY DAKOTA TAIT
Hunter residents are facing a significant hike to their council rates next financial year.
The Independent Pricing and Regulatory Tribunal (IPART) has pegged the 2023-24 base rate for NSW councils at 3.7 percent, a stark increase on this year's 0.7 percent.
While Newcastle and Lake Macquarie will stick to the base rate, the potential peg's been set as high as 4.4 percent in Port Stephens, and 5.9 percent in Maitland, the second-highest in the state.
IPART Chair Carmel Donnelly says it's a mechanism for regions experiencing population growth, however, and not all ratepayers will see the same rate hike in the same council area.
"The amount that's for a population factor is just about recognising that there needs to be, if you like, a bigger bucket because there's a bigger population," she said.
"It's shared amongst more people."
Higher inflation has also meant councils are facing bigger costs to deliver services, though the upcoming base rate is still below Australia's current rate of inflation.
Port Stephens Council is already seeking input from the community on a potential special variation to help alleviate the city's financial woes - either a one-off 26 percent hike, or 10.5 percent each year for three years.
Port Stephens, as well as Newcastle, Lake Macquarie, Cessnock, and Muswellbrook have also been granted special rate increases for the current year, from 0.7 percent to 2.5 percent.
Maitland residents could be in for a bigger shock when it comes to costs, however, the council previously choosing to stick with the 0.7 percent peg.
Maitland Council General Manager David Evans says there's a lot to consider, and ratepayers shouldn't jump to conclusions ahead of the next financial year.
"It's important to stress, that one, it's a maximum," he said. "It's not an obligation on council to take up the full amount of that rate peg."
"The decision truly is a decision that can only be made once we start to move through our budgeting processes."
"The other important point is that it's a percentage increase that applies to Council's total rate yield. It's across the whole of the local government area. It's not a percentage that applies to any one individual rate notice."
Taking into account the population factor, here's what the base rate peg will look like in your council area.
- Cessnock - 3.8 percent
- Dungog - 4.4 percent
- Lake Macquarie - 3.7 percent
- Maitland - 5.9 percent
- Muswellbrook - 3.7 percent
- Newcastle - 3.7 percent
- Port Stephens - 4.4 percent
- Singleton - 3.9 percent
- Upper Hunter - 3.7 percent
