Tamworth rate rise: ratepayers could face two per cent rate increase with IPART rate peg

The figure set by the Independent Pricing and Regulatory Tribunal (IPART) comes down to higher costs local councils will face for their 2021 elections, tribunal member Deborah Cope said.

"We have included an adjustment of 0.2 per cent for election costs based on the expected costs for the average council in NSW," she said.

The ballot boxes were closed this year and postponed to next due to the outbreak of COVID-19.

IPART maintains the rate rise of 0.2 per cent will be reversed in the 2022 to 2023 rate peg so that ratepayers are not overcharged in non-election years.

Tamworth Regional Council has the option under the rate peg to increase its income by two per cent, less than that or not at all.

Council must have revenue to deliver the services the community relies on, mayor Col Murray said.

"Nobody is going to like it and I accept that, I'm a ratepayer too, but we can't ignore that you have to keep pace with costs," he said.

"Our budget is about $180 million and I think our rate revenue is somewhere in the $40 million, a lot of our revenue comes from fees and charges, and state and federal government grants.

"Our revenue will be down significantly this year so the council would consider any opportunity for an increase as with any other business."

Without the business income usually generated by Tamworth Regional Airport or the Australian Equine and Livestock Events Centre (AELEC), the council budget has taken a hit.

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Tamworth Regional Ratepayers' Association president David McKinnon said two per cent is lower than he expected.

"Even two per cent will hurt a lot of people but at least it's not above three per cent," he said.

"We would not want to know the outstanding debt of rates that exists with the council this year, there's no way it will vanish so I hope there is an awareness that we need the two per cent maximum to get over COVID.

"It would be a terrible debt the council would have from ratepayers unable to meet their commitments, fortunately regional areas haven't done as badly as the cities but there is still an impact."