The Independent Pricing and Regulatory Tribunal has approved special rate variations of up to 64.3 per cent for country councils in a move farmers say will smash local communities.
On Thursday IPART announced 17 council applications for special rate variations had been approved, with the biggest cumulative rises being 64.3 per cent over three years for Queanbeyan-Palerang Regional Council, 58.8 per cent over three years for Armidale Regional Council and 57.74 per cent over three years for Walcha Council. Ratepayers to Lithgow City Council, meanwhile, will cop a 45.78 per cent rise in just one year.
NSW Farmers President Xavier Martin said the rises were yet another hit to the bottom line, at a time when farmers and families alike could least afford it.
“We’re all facing the same cost of living pressures, high power prices, high fuel prices, rising interest rates, and we’ve got no ability to meet those extra costs,” Mr Martin said.
“Every time you turn around someone’s putting their hand in the farmer’s pocket, and these rate rises will just further squeeze businesses and households in these areas.
“This is going to seriously hurt a number of farming businesses, and will also be a big hit to families.”
In a media release IPART acknowledged public concerns about the financial model for councils that have little ability to balance their own budgets without slugging ratepayers extra.
“We considered everything raised in submissions including the impact of rates increases on ratepayers given current cost of living pressures,” IPART chair Carmel Donnelly said in the media release. “We also considered the impact on communities if councils were unable to deliver services that people depend on.”
Ms Donelly went on to say IPART questioned whether this year’s large special variation applications reinforced recent calls for the NSW Government to consider commissioning an independent investigation of the financial model for councils.
“The independent investigation suggested by IPART could examine why some councils have decided the only way to address financial sustainability is through seeking substantial increases to rates income, and could also review the current special variation guidelines, criteria and process,” she said in the release.
Mr Martin agreed and said there needed to be a better way forward for local governments given so many were dealing with the ongoing impact of widespread flooding.
“If we don’t have meaningful, practical reform of the way local governments are funded then we’ll continue to see ratepayers shoulder the burden,” Mr Martin said.
