June 28, 2022

Gunnedah Shire Council has been successful in its application for an Additional Special Variation (ASV) of rates to continue to support the delivery of services and maintenance of assets in the years to come.

Council resolved on April 20, 2022 to make an application for the ASV, and was among many New South Wales councils to apply for a variation following recent changes to the way the Independent Pricing and Regulatory Tribunal NSW (IPART) calculated the rates increase cap.

The changes resulted in the lowest ever rate increase cap of 0.8%, significantly below the 2.5% figure originally set and advised by IPART, for long-term modelling by councils including Gunnedah. The cap would have left Gunnedah Shire’s services significantly underfunded for planned community services and works over the next 10 years.

“IPART has approved applications by 86 NSW councils to increase their rates above the level of the annual rate peg,” IPART announced in a fact sheet this week.

Gunnedah Shire Council’s application for a rates variation was found to meet the three criteria set by the Office of Local Government: 1. Council had planned for a 2.5% increase in income; 2. Council supported the planned increase in income; and 3. Council demonstrated financial need.

Gunnedah Shire Council Mayor Jamie Chaffey welcomed the decision he said was necessary to maintain Gunnedah’s essential assets and the provision of community services.

“The original IPART calculations did not take into account the burgeoning costs the state and country is facing at the moment with construction and material costs, fuel cost and labour costs,” Cr Chaffey said.

“Our Shire is growing and this approval was critical for delivering for our community.”

IPART approved a permanent 2.5% Additional Special Variation in 2022-23 (including the rate peg) that will become part of the permanent rate base.

Council continues to have a Hardship Policy in place to assist ratepayers who are having difficulty meeting their payments.

The rates variation will allow Council to deliver services and capital works as outlined in Gunnedah Shire Council’s draft Operational Plan, which will be considered at an extraordinary meeting on June 29.

ENDS

For more information, contact Gunnedah Shire Council’s media team on (02) 6740 2100.