Ku-ring-gai ratepayers face $499 annual hike, as council cries poor

⏱️This story is a three-minute read.

Residents of the Ku-ring-gai LGA may face a major rate rise in the coming year, after councillors voted last night to pursue a 29% “special rate variation” (SRV). 

Each year, the Independent Pricing and Regulatory Tribunal (IPART) sets a minimum amount that a local council can increase rates by. These amounts vary by council.

This is known as the rate peg, and takes into account inflation and population growth. The rate peg set for Ku-ring-gai Council next financial year is 4.4%. On top of this, it will seek an additional 24.6% increase. This is known as a special rate variation, and requires IPART approval.

If IPART was to approve the Ku-ring-gai SRV, average rates would rise by $499 a year ($9.60 a week), to about $2,220.

🤌How much is that?

The last time Ku-ring-gai Council applied for an SRV was in 2022/23. In that financial year IPART had set the rate peg for Ku-ring-gai at 0.7 percent, but the council was successful in having this increased to 2.5 percent via an SRV. 

Mayor Christine Kay advocated for the 29 percent hike, saying that “in the last few years, the cost of maintaining and renewing our local infrastructure has risen sharply. Like every household, council faces increasing costs for construction insurance and materials”.

Councillor Sam Ngai also spoke in favour, saying inflation over the past decade had outstripped rate increases.

💰Where’s the money, Lebowski?

In the previous financial year (2024/25), Ku-ring-gai council raked in $103.48 million from rates and annual charges, a five percent increase from the year prior. 

If IPART approves the special rate variation, the council is estimated to take in approximately $136 million in rates next financial year. 

Those additional funds will be spread out across infrastructure renewal projects, new footpaths and the construction of a St Ives indoor sports centre.

🎭Lots of bread, but no circus

The rate increase was not without its critics. Councillor Indu Balachandran put forward an alternative motion, maintaining the 29 percent increase, but shifting budget allocations to secure funding for the redevelopment of Marian Street Theatre. She said, for example,  some of the funds could be siphoned from the footpath budget.

Balachandran advocated for the revitalisation of the historic theatre, arguing that Ku-ring-gai lacked performance spaces for cultural events and entertainment productions.

Her motion was defeated 7-3.

The original motion — advocating for the 29 percent increase — was passed 8-2.