Rates in North Sydney are expected to increase 52.66% over three years, following approval by regulator IPART for a permanent special variation.
If passed by council this month, rates will increase from July this year, with minimum residential rates also increasing by $473 to $1,216 by 2028. The increase will generate an extra $34.2 million in income over three years, which council said it would use to address an infrastructure backlog and repay loans.
“The primary focus of the SRV is infrastructure renewal and reducing asset backlog, while also supporting improved systems, governance and service delivery into the future,” Mayor Zoë Baker said.
“This approval is an important step towards restoring council’s long-term financial sustainability and ensuring we can continue to provide the infrastructure, services and public spaces our community relies upon.”
IPART said in its report that council had demonstrated financial need, with operating expenses expected to exceed revenue without a special variation, which would leave council with an operating performance ratio of -2.5% over five years.
“The council provided evidence that its community was aware of the need for and extent of the proposed special variation. It also established that the impact of the proposed rate increase on affected ratepayers was reasonable.”
IPART suggested council may want to reduce its ordinary rates in future once it has reviewed its property portfolio.
Council’s Productivity and Improvement Plan has identified savings and new revenue, reducing the need for a larger rate increase while reinforcing council’s commitment to careful financial management and transparency.
“Council understands the impact any increase in household costs can have on residents and businesses,” Mayor Baker said.
“We remain committed to responsible governance, ongoing productivity improvement and ensuring these funds are directed towards the long-term sustainability, liveability and resilience of North Sydney.”
Council will now update its Long-Term Financial Plan and Delivery Program to reflect IPART’s determination and proceed with implementing its financial sustainability pathway.
The news comes as council announced its North Sydney Olympic Pool will reopen on 7 August, three months after practical completion.
North Shore MP Felicity Wilson said she was ‘deeply disappointed’ by the decision.
“86% of residents who made submissions to IPART opposed this rate rise. That is an overwhelming verdict from our community, and it should have been heard.”
Council is expected to vote on whether the special variation should go ahead at its next meeting on 22 June.
Read the full report here: North Sydney Council – Special Variation and Minimum Rate Application 2026-27 – Final Report