15 May 2025
The Independent Pricing and Regulatory Tribunal (IPART) has approved Gunnedah Shire Council’s application to increase rates above the rate peg.
Gunnedah Shire Council was one of six New South Wales councils to request a Special Rate Variation.
Gunnedah Shire Council Mayor Colleen Fuller said Council had identified that a Special Rate Variation was needed to address Council’s financial sustainability and maintain essential community infrastructure and service levels.
“Like the majority of councils across New South Wales, Gunnedah Shire Council has found the NSW rate peg, cost shifting and rapidly rising expenses has not allowed rates to keep pace with costs,” Cr Fuller said.
“To ensure the sustainability of our Council and the services and infrastructure it provides, Councillors voted to begin a conversation with our community about a potential rate variation in June last year.
“The proposed variation was amended to reflect the extensive community feedback and Council committed to an application to seek a permanent Special Rate Variation in November 2024.”
The application was submitted to IPART, who undertook their own extended period of consultation. IPART received only 18 submissions relating to the Gunnedah Shire application, and 195 survey responses. For comparison, the Northern Beaches Council submission prompted 558 submissions and 2,685 survey responses. Federation Council, which has a slightly smaller population than Gunnedah Shire, received 129 submissions and 535 survey responses.
IPART also approved Council’s application to increase the maximum value of the Minimum Rate to be in line with increase proposed by the Special Rate Variation.
IPART noted it had considered applications in accordance with the Office of Local Government’s criteria and considered all feedback ahead of its decision.
Council has been granted approval for a permanent cumulative Special Rate Variation of 37.67% over two years commencing from 1 July 2025. This applies only to the rates portion of the bill (usually listed as the first item e.g. “Residential Gunnedah”) and not the separately listed essential charges such as waste, water and sewerage.
The Special Rate Variation is to be applied based on:
- a 32.25% cumulative increase (21.80% above rate peg) applied to the Residential, Business, Farmland rating categories, and
- an 85.13% cumulative increase (64.33% above rate peg) applied to the Mining rating category.
|
2025/26 |
2026/27 |
Cumulative |
|
|
Permanent increase above rate peg |
13.30% |
13.17% |
|
|
Rate Peg (forecast) |
4.70% |
3.50% |
|
|
Total Increase |
18.00% |
16.67% |
37.67% |
The yearly increases would be applied as follows:
|
Category |
Year 1 |
Year 2 |
Compounded Increase % Change |
|
Residential |
15.00% |
15.00% |
32.25% |
|
Business |
15.00% |
15.00% |
32.25% |
|
Farmland |
15.00% |
15.00% |
32.25% |
|
Mining |
43.66% |
28.87% |
85.13% |
These values include a rate peg of 4.7% in Year 1 and 3.5% in Year 2. The SRV is 26.47% above the rate peg limit.
“This has been a difficult path to take given the rising cost of living and our commitment to supporting our community,” Cr Fuller said. “However, IPART’s decision will allow Gunnedah Shire Council to go forward in the certainty that we can continue to provide the Shire with the services and infrastructure it values.
“We were pleased to be told by IPART that Council’s application had articulated the need for the Special Rate Variation well and we have received approval in full for both the Special Rate Variation and associated Minimum Rate increase.
“In the past few years, Gunnedah Shire Council has made a concerted effort to identify cost savings to delay the need for a Special Rate Variation. Every effort will continue to be made to streamline operations and find ways to save money and improve efficiency in accordance with Council’s resolved position to strive to achieve $930,000 of savings and efficiency gains.
“Council also resolved to freeze increases to Sewerage and Waste Management annual charges during the Special Rate Variation implementation period to help reduce the impact of the Special Rate Variation on ratepayers.”
The Special Rate Variation will take effect in the new financial year.
To find out more, or to use our special rates calculator, visit: www.gunnedah.nsw.gov.au/index.php/council/the-future-of-gunnedah/proposed-special-rate-variation
To view the Instruments of Approval and full report on the Special Rate Variation, click here: https://www.ipart.nsw.gov.au/node/973?review_id=1869
Ratepayers with queries or concerns are encouraged to contact Council’s Customer Service team on (02) 6740 2100.
ENDS
Media and communications team contact: (02) 6740 2100 or communications@gunnedah.nsw.gov.au
