North Sydney Council 87% rate hike rejected by pricing tribunal

North Sydney Council’s proposed rate hike of 87 percent has been rejected by the Independent Pricing and Regulatory Tribunal (IPART). 

The ruling by IPART only approved an increase according to the rate peg — the maximum amount IPART permits councils to raise rates per annum — of 4 percent.

The hugely controversial pitch to nearly double rates was proposed in a North Sydney Council meeting on February 10.

When the motion was debated more than 25 local residents, including State MP Felicity Wilson, spoke against it. The motion was carried by seven votes to three.

Councillors in favour of the 87 percent rise argued it was tough but necessary, and that the increased rate was reasonable when compared to the rates of other councils in the area. Those against it argued it was excessive and hastily implemented.

North Sydney Council stated that “while disappointed, it respected IPART’s decision and would now need to consider alternative strategies to repair its financial position”.

IPART is an independent body that reports to the NSW government on matters of pricing. The body’s role is to regulate the prices charged by government bodies and services — such as public transport fares, water prices, and in this case, council rates — to ensure they are fair and competitive.

To raise rates above the IPART rate peg a council must submit a special variation application.

In a media statement, North Shore MP Felicity Wilson said the decision “is a win for people power and a clear verdict on the overreach of North Sydney Council”. Willoughby MP Tim James also celebrated the decision, saying in a statement that “an 87% rate increase was nothing but overreach that Council should never have proposed”.

Federal member for Warringah Zali Steggall, while welcoming the decision as “reassuring to many in the community”, also took the opportunity to emphasise the responsibility of the state government in assisting local councils. 

“State MPs should be actively working with councils to identify ways the NSW Government can provide greater support”, she stated.

Image Credit: North Sydney Council