Local Government Minister Wendy Tuckerman has cleared the way for councils to apply for a special one-off rate variation for planned infrastructure and community services, which may make up for the historically low 0.7 per cent baseline rate peg announced in December last year.

Minister Tuckerman told an Estimates Committee of the NSW Parliament that councils would have almost two months to apply to IPART for a special one-off rate variation, if they could show the funding was critical to undertake planned work identified in last year’s financial planning process.

Decisions by IPART are expected by 21 June.

The one-off variation could exceed the 0.7% rate peg, but would still be capped at a maximum of 2.5%, the Minister said. This is the amount that councils usually receive as a rate peg.

“We thank Minister Tuckerman for creating this opportunity for local councils who have been hit hard over the past few years by weather events and the pandemic,” says Kiama Council’s CEO Jane Stroud.

“It will be a decision for Council to make whether Kiama Council will apply for the special one-off rate variation.

“If we were to apply, the money would most likely be used to fund additional and planned works to repair and maintain local roads, particularly those that were damaged during the recent weather event.”

The decision comes after strong lobbying by Local Government NSW.

“We are really grateful to Minster Tuckerman for recognising the seriousness of the situation, and responding to LGNSW’s urgent advocacy on council’s behalf,” says the organisation’s President, Councillor Darriea Turley.

“The opportunity to increase rates by up to 2.5% is still less than inflation, but it is in line with what councils expected when they finalised their budget, work planning and community consultation process last year.”

In other news, Kiama Council is amongst 45 councils to receive an initial $1 million from the NSW and Federal Government under Disaster Recovery Funding Arrangements.