Clarence Valley Council welcomes new rate peg methodology

Published on 11 December 2023

Each year the Independent Pricing and Regulatory Tribunal (IPART) sets the rate peg for all councils for the following financial year.

The rate peg for the 2024/2025 financial year has been determined using IPARTS new rate peg methodology, which takes into account the Base Cost Change (incorporating changes to employee costs, asset costs and operating costs), a population factor based on past changes in population, an Emergency Services Levy factor and a catch-up adjustment for past changes in the superannuation guarantee rate.

Across NSW, the final rate peg for the 2024/2025 financial year (i.e. after applying the population factor) ranges from 4.5% to 8.2%, 3.9% of which is Base Cost Change.

IPART has determined a rate peg of 4.7% for the Clarence Valley LGA, 3.9% of which is Base Cost Change and 0.2% and 0.4% of which is attributed to Population Growth and Superannuation adjustment respectively.

Council staff will use the 4.7% rate peg in their preparation of the 2024/2025 draft Budget, which will be considered by Council in early 2024 prior to being placed on public exhibition. Following the exhibition period, it will be Council that determines the budgets, including the rate peg to be applied to the 2024/2025 financial year.

Council’s General Manager, Laura Black says she is pleased that IPART has commenced application of the new methodology, which better reflects the increased cost to Council to provide the services and facilities community expects.

“While we recognise that some ratepayers are doing it tough, the option of not providing services or reducing service levels below expectations, is not viable.

Therefore, we will be basing our draft plans on the full rate peg allowed. Ultimately, applying the rate peg is the decision of the Council when it considers the 2024/2025 Operational Plan.”