Rate rise to hit residents after IPART says 'yes' to council's plan

The Independent Pricing and Regulatory Tribunal (IPART), announced on Tuesday, May 14, Tamworth Regional Council's application for a Special Rate Variation (SRV) had been approved in full.

The council has been given the approval to up rates by 18.5 per cent for the 2024-25 financial year, and 15 per cent for the 2025-26 financial year.

Both increases include the yearly rate peg set by IPART.

On average, this would see residential rates increase by $221.50 in the next financial year, and $212.82 the year after.

Businesses would be forced to pay an extra $768.49 in the 2024-25 financial year, and $738.38 the following year.

The proposal to increase rates was first put before council in September 2023.

At the time, mayor Russell Webb said without the rate rise, and if the council does nothing, the city could face losses of up to $10 million per year.

A six-week community consultation period was held in 2023, with thousands of residents voicing their opinions on the rate rise.

Tamworth council collected responses from residents via online submissions and in-person consultation.

A survey conducted during the consultation period, which attracted 872 responses, found 97 per cent of participants were opposed to the planned increase.

A community campaign dubbed 'Figure It Out TRC' launched a petition against the rate rise which gathered more than 3000 signatures.

Despite the overwhelming backlash, councillors voted to push ahead with plans to increase rates at a meeting in November last year

The public council meeting was held at the Tamworth Town Hall to accommodate for the increased amount of public interest in the matter.

In its proposal to the independent pricing watchdog, Tamworth council submitted the rate rise was required to achieve financial stability and maintain fit-for-purpose infrastructure. A majority of the extra cash is expected to go towards maintaining and renewing the road network.

IPART chair Carmel Donnelly said the decision to approve the SRV was based on issues raised during the submission period in March this year and criteria from the Office of Local Government.

"The councils with approved increases are encouraged to consult with the community to decide how best to implement the allowed increase," Ms Donnelly said.

Councillors are able to choose when they implement the approved increases in rates income, which can be deferred for up to 10 years.

A total of nine councils across NSW applied for SRV.

Blayney Shire Council, Narrandera Shire Council, Randwick City Council, and Willoughby City Council also had their applications approved by IPART.

Kempsey Shire Council, Griffith City Council, and Goulburn Mulwaree Council had their applications partially approved at a lower increase.

IPART declined an application from Snowy Valleys Council.