The Independent Pricing and Regulatory Tribunal (IPART) has set Kiama Council a rate peg of 5.1 per cent for the 2023/4 year.

“An increase in our rate peg will be welcomed by our council and all councils who have been affected by previous decisions of the Independent Pricing and Regulatory Tribunal of NSW,” says Mayor Neil Reilly.

“This is not an automatic increase and the elected council will have to consider the idea and whether to implement it.’

Councillors are yet to decide whether to apply for a special rate variation would be an appropriate response to Council’s financial situation, as it is one option being considered.

The rate peg for each council is set using an index which measures the average costs faced by NSW councils and a population factor based on each council’s population growth. Rate pegs set throughout NSW for this period range from 3.7% to 6.8%.

The rate peg sets the maximum increase in each council's general income for the financial year. The rate peg applies to general income in total, and not to individual ratepayers’ rates.

2023/4 rates will be based on 1 July 2022 land values, but the steep rises in land values won’t be reflected in total rates collected because of the rate capping.