WAKOOL and Balranald shire councils face a shorter rate rise cap for the next financial year, the state’s regulatory tribunal has decided.
The Independent Pricing and Regulatory Tribunal (IPART) has set the rate peg for 2016-17 at 1.8 per cent to reflect this past year’s 1.78 per cent rise in the Local Government Cost Index (LGCI), the average costs faced by councils.
“The Local Government Cost Index increased by 1.78 per cent in the year to September 2015, reflecting the continuing low inflationary environment and modest rate of public sector wages growth since late 2012,” IPART Chairman Peter Boxall said.
“When costs are stable there is no justification to increase the burden on ratepayers beyond inflation.
This financial year, the peg was set at 2.4 per cent, with Balranald Shire Council issuing a rate rise of the same amount.
Wakool Shire Council, on the other hand, needed to apply for a special rate variation for its seven per cent rise, requiring it to consult with the community before submitting an application to IPART.
Wakool Shire Mayor Neil Gorey said he wasn’t too concerned with the rate peg this time around, however it did increase pressure on local governments after the Federal Government’s freezing of indexation on Financial Assistance Grants (FAG).
“We’re certainly disappointed it seems to be more pressure being put back upon councils about delivering appropriate reform. At the same time I’m reasonably confident that we’ve taken the right steps needed with our rate rise,” Cr Gorey said.
“They’ve just got to stand by their promise to restore the indexation of the FAGs grants after three years.
“We’re partway through the first year so in two years we should get that indexation.”
The peg will cover all means of general income, including annual user charges as well as rates revenue.
The deadline to notify IPART of a special rate variation is today.
