2.3 per cent rate peg enables Council to increase rates

Rates increase signal

Central Coast Council will be able to increase the revenue it collects from rates by up to 2.3 per cent in 2018 19, under the rate peg announced by the Independent Pricing and Regulatory Tribunal (IPART).
Even though Council’s rate path has been frozen for four years as an outcome of the merger of the former Wyong and Gosford Councils, it is able to pass on the rate peg.
The rate peg is determined by IPART each year and it sets the maximum general income NSW Councils can collect.
The main component of general income is rates revenue.
Central Coast Council cannot apply to IPART for a special variation to increase its general income by more than the rate peg for the extent of the rate path freeze.
IPART determines the rate peg by measuring changes in the Local Government Cost Index (LGCI), which includes changes in the average costs faced by councils, and consideration of a factor to reflect improvements in productivity.
IPART Chair, Dr Peter Boxall, said next year’s rate peg is higher than the previous two years (1.8 per cent in 2016-17 and 1.5 per cent in 2017-18), primarily due to increases in labour costs, electricity and street lighting charges, and higher construction costs for roads, drains, footpaths, kerbing and bridges.

Source:
Media release, Nov 30
Julie Sheather, IPART

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