Councils across the state have received their rate pegs for the upcoming 2025/26 financial year. Kiama Municipal Council has seen a decrease from the 2023/24 financial year— with a decrease from 4.5 to 3.7 per cent. 

The rate peg is the maximum percentage amount in which a council is allowed to increase its general income for the year. There is a separate rate peg for each of NSW’s 128 councils.

The main purpose of a rate peg is to protect ratepayers from excessive increases in their rates bills. 

IPART Chair Carmel Donnelly said the rate pegs limit the amount by which councils can increase their rates income and allow them to meet changes in the cost of providing services. 

“The Tribunal understands that the community has been facing significant cost of living pressures and we have taken this into account in our decision making.”

Rates constitute on average one third of a council’s total income.

Councils receive income from different sources, this can include grants, user fees and charges. Rate pegs only apply to ‘general income’ which is received mostly from rates.

Each council’s rate peg is open to councils to decide not to implement the increase or delay it. 

“Ultimately, elected councillors decide whether to increase rates and by how much,” Ms Donnelly said.

The Independent Pricing and Regulatory Tribunal of NSW (IPART) is the independent authority and pricing tribunal of the NSW government responsible for regulating markets and government services.