The Independent Pricing and Regulatory Tribunal (IPART) has approved Kiama Council’s application to increase its rates by 2.5 per cent this year.

It was amongst 86 other NSW councils which applied to increase their rates above the level of the annual rate peg (which was just 0.7 per cent, although IPART had three years ago approved a special rate variation of 1.6 per cent for Kiama).

Council’s March Business Paper said the total 2.5 per cent rate rise will bring in just less than $500,000, which will be “used to fund the delivery of essential services and facilities for the benefit of ratepayers”.

Of this, the difference between the original IPART approved rate peg of 1.6 per cent and the 2.5 per cent now granted is $174,451.

“The simple fact that more than three-quarters of the state’s councils were forced to seek a special rate variation shows the methodology used by the Tribunal to calculate the rate cap is irretrievably broken,” says Local Government NSW (LGNSW) President Darriea Turley.

“It is clearly no longer fit for purpose, so I would urge both the State Government and the IPART to make sure the upcoming review comes back with a system that works.”

Council’s Long Term Financial Plan, adopted in 2018 and currently being updated, is based on an ongoing 2.5 per cent increase.