With new land valuation notices going out shortly [Kiama LGA residential land increases by 37.8%], the question is what impact will the big increases have on the rates Kiama Council charge? The answer is complicated and as yet unknown.

The current financial year is the last of the three years based on the 2018/9 valuations. The 2022 land values will be used to calculate Council’s rates and charges for the 2023-24, 2024-25 and 2025-26 financial years.

While our residential land value has gone up 115 per cent since then, this does not mean that Council rates will increase in tandem due largely to the rate peg.

Last September, the State Government’s Independent Pricing and Regulatory Tribunal set a 2023-24 rate peg for Kiama Council of 5.1 per cent.

Rate pegging means a council’s overall rates revenue cannot increase by more than the approved percentage increase.

The Office of Local Government’s website says that “if overall land values rise, councils may have to reduce or otherwise adjust the amount of rates levied per dollar so that total income does not grow by more than the approved percentage increase.”

Council staff will attend a workshop with the Valuer General of NSW in mid-February on how land value changes will apply to properties in the LGA.

“Property prices and valuations have changed significantly in recent years. We need to get the facts straight before we can begin to inform people how the changes will affect everyone,” says Interim Chief Operating Officer Joe Gaudiosi.

It is anticipated that Council will be able to provide estimates of the potential rate increases/decreases in March 2023.

“We will keep the community informed of the State Government changes when we know about it. Further communication will likely come out from us about this in March,” says Mr Gaudiosi.