Rates regulator IPART has rejected an 87% rate rise application for North Sydney – but approved a 25.2% hike for the Northern Beaches.
Both councils had applied to IPART for a special rate variation (SRV), which they said was to enable them to enable capital works projects into the future, address the income drop from COVID-19, and counter rising interest rates and building costs.
But in the case of North Sydney Council, which is facing a cost blow out for its $120 million Olympic pool renovation, IPART said council had ‘not clearly identify the need for, and purpose of, the proposed SRV in its reporting documents or its community consultation materials.’
“While the documents describe the need to improve financial sustainability, it was not apparent that this meant the council would accumulate significant surpluses over the next 10 years,” IPART said. “The council was also not clear about how it would spend the funds in the proposed accumulated reserves.”
IPART did approve a ‘rate peg’ increase of 4% for the next financial year, which is the maximum allowed for the 2025/2026 period.
North Shore MP Felicity Wilson said the decision was a ‘win for people power and a clear verdict on the overreach of North Sydney Council, who ignored the voices and the needs of our community, while arrogantly pursuing a shopping list of new pet projects at the expense of those who could least afford it.”
North Sydney Council Mayor Zoë Baker was disappointed with the decision: “Unfortunately, this decision means council will have to make really tough choices and decisions. Service cuts, asset sales and other measures will have to be on the table – none of which support intergenerational equity.”
In the case of Northern Beaches Council, the ‘typical’ ratepayer will now be paying $42 more per quarter, or $168 per year, council said.
While the council’s SRV of 39.6% was not approved in full, IPART approved a two-year permanent SRV of 25.2%, comprising an increase of 12.1% in 2025/2026 and 11.7% in 2026/2027.
The approval is subject to certain conditions, including that the council outline a full program of expenditure funded by the additional income and the outcomes achieved for the next eight years. The rate rise will mean $24 million in extra income for 2025/2026, and $26 million for 2026/2027.
