LOCAL councils are hopeful a state government review of councils’ rating system will address long-standing issues that negatively affect their financial situation.
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The review by the Independent Pricing and Regulatory Tribunal (IPART) will revisit all aspects of how rates are levied, in an effort to design a system that better supports local governments.
Gunnedah Shire and Tamworth Regional councils have put in submissions to the review.
Gunnedah mayor Owen Hasler welcomed the “long-delayed” review.
“The local government sector has long argued that a more effective rating system is the key to financial sustainability,” Cr Hasler said.
“The problem for local government is that we are financially negatively impacted by both rate-pegging and cost-shifting.
“We need to be able to design a rating schedule that will ensure we can continue to meet the service and infrastructure needs of our community.
“Costs of delivering services are continuing to rise, making it harder for councils to maintain financial viability for the long term, given we are so limited by the current rating policy.”
Cr Hasler said provided IPART approached the inquiry in an “objective and equitable manner”, there could be some tangible benefits for the community.
Tamworth council’s executive manager of corporate and governance, Robert Charlesworth, said there was a number of issues council wanted addressed, such as pensioner concessions.
“We consider that a welfare function, rather then a rating function,” Mr Charlesworth said.
TRC also wants to see a set criteria for special rate variations.
“At the moment it’s very hard to convince the public or IPART to accept a special rate variation when it’s needed,” Mr Charlesworth said.
“A set criteria would allow us to tick the boxes and demonstrate exactly why it’s necessary.”
The review will also look at how merged councils can transition to an equitable rating system and how to implement the government’s rate path freeze policy for merged councils.
A draft report will be released in August, with public hearings to take place in September.
A final report and recommendations to the Local Government Minister will be delivered in December.
