Steep rate rises cleared for NSW councils

Council rates will rise by almost 50 per cent in one year in some of the 17 local government areas permitted to raise taxes above the statewide cap of 3.7 per cent.

It comes as the NSW government is urged to bring local funding up to speed with the rest of the country.

Rates will nearly double over four years in Strathfield in Sydney's inner west, starting with a 35 per cent rise in 2023/24.

Canada Bay ratepayers, who resisted amalgamation with Strathfield and Burwood in 2017, also face a rise of about 15 per cent from July and 32 per cent over four years.

Those in Armidale, Queanbeyan-Palerang, Bega Valley and Walcha face rises north of 50 per cent over multiple years, while consistent losses over a decade helped the case for Lithgow City Council to increase its levies by 45 per cent in 2023/24.

The independent tribunal that approved the rise on Thursday said it had considered the councils' applications and more than 1800 public submissions.

"We considered everything raised in submissions including the impact of rates increases on ratepayers given current cost-of-living pressures," Independent Pricing and Regulatory Tribunal (IPART) chair Carmel Donnelly said.

"We also considered the impact on communities if councils were unable to deliver services that people depend on."

The tribunal decision is the maximum rate rise permitted and it is up to councils to decide whether to pass on the rate rise in full or in part.

NSW local government leaders have long called for an overhaul of the rate-cap system, saying it does not reflect communities' needs as councils have become heavily reliant on state and federal grants.

IPART last week called for an independent investigation into the financial model for councils.

It also proposed a raft of changes to the cap system, including changing the methodology to be more responsive to inflation and other economic factors.

In Western Australia, Queensland, South Australia, Tasmania and the Northern Territory, councils can set their own rates with varying restrictions.

Victoria sets rate caps using consumer price index forecasts.

SUMMARY OF APPROVED RATE RISES

(Council, cumulative increase)

Armidale - 58.8 per cent over three years

Bega Valley - 48.3 per cent over two years

Bellingen - 31.1 per cent over four years

Canada Bay - 32.5 per cent over four years

Federation (partial approval, temporary rise) - 39.2 per cent over two years

Hornsby - 31.1 per cent over four years

Junee - 32.2 per cent over two years

Lithgow - 45.8 per cent over one year

Liverpool Plains - 18.1 per cent over one year

Port Stephens - 31.3 per cent over three years

Queanbeyan-Palerang - 64.3 per cent over three years

Snowy Monaro (partial approval) - 52.5 per cent over four years

Strathfield Municipal - 92.8 per cent over four years

Tenterfield (partial approval) - 43 per cent over one year

Tweed Shire - 6.4 per cent over one year

Walcha - 57.7 per cent over three years

Woollahra - 22.2 per cent over two years

Australian Associated Press