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Rate Peg

local government RATE PEG

IPART determines the rate peg that applies to local government rate income. 

What is the rate peg?

The rate peg determines the maximum percentage amount by which a council may increase its general income for the year.  Since 2011/12, it has been set by IPART under a delegation by the Minister for Local Government. The rate peg is mainly based on the Local Government Cost Index (LGCI), which measures price movements over the past year for goods, materials and labour used by an average council.  We also deduct a productivity factor.

Rate Peg -  2014/15

Rate peg to apply in the 2014/15 financial year will be 2.3%. For more information on the Local Government Rate Peg, see the Information PaperFact Sheet and Media Release.

  • The rate peg for 2014/15 was determined by IPART using a Local Government Cost Index and a productivity factor. We have also made an adjustment for the carbon price advance that was included in the rate peg in 2012/13.
  • The Local Government Cost Index increased by 2.8% in the year to September 2013.
  • We deducted a productivity factor of 0.2% to get an unadjusted rate peg. We then deducted 0.3% to adjust for the remainder of the carbon price advance that was bought forward into the 2012/13 rate peg.

Under the Local Government Act, councils are able to seek additional increases in general income beyond the annual rate peg, by applying to IPART for a ‘special rate variation’.

Local Government Cost Index

The Local Government Cost Index (pdf 458.9KB) was developed by IPART, following a survey of councils by IPART in 2010. For more information on the Local Government Cost Index click here.

ENQUIRIES

Enquiries regarding income setting and the annual rate peg may be directed to:
Michael Seery at Michael_Seery@ipart.nsw.gov.au or by telephone (02) 9290 8421
Kumi Cuthbertson at Kumi_Cuthbertson@ipart.nsw.gov.au or by telephone (02) 9290 8479
Dennis Mahoney at Dennis_Mahoney@ipart.nsw.gov.au or by telephone (02) 9290 8494

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