IPART sets 2027-28 rate pegs for NSW councils
Core pegs range from 3.7 to 5.4 per cent
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The Independent Pricing and Regulatory Tribunal (IPART) has set the 2027-28 rate peg for each of the state’s 128 councils. Core rate pegs range from 3.7 per cent to 5.4 per cent.
IPART Chair Anthony Wing said the peg is the maximum percentage by which a council can increase its general income, which is the money raised from rates. Some councils also receive a population growth factor on top of the core peg. Once that factor is included, final pegs range from 3.7 per cent to 6.6 per cent, the highest being Coolamon.
The 2027-28 pegs also recognise the ongoing cost of strengthening councils’ cybersecurity capability. The cybersecurity adjustment ranges from 0.4 per cent to 1.2 per cent. IPART describes this as an indicative increase of around $6 to $8 a year for an average residential ratepayer. Mr Wing said councils are accountable for how they use rates income for this purpose.
Mr Wing noted that general income makes up about one-third of NSW council income on average. The rest comes from grants, fees, developer contributions and other charges.
The peg does not set rate rises for individual households or businesses. In Mr Wing’s words, “It is now up to each council to decide whether to increase rates”, which categories of rates will rise, and what support to offer ratepayers in financial difficulty.
An information paper listing the rate peg for every council is available on IPART’s website.