The rate peg sets the maximum increase in each council’s ‘general income’ for the financial year. The main component of general income is rates revenue. General income does not include other forms of revenue such as fees, fines, water or sewerage rates, domestic waste management charges and developer charges. It does include a small number of annual charges for some councils, such as drainage levies.
The rate peg does not apply to individual ratepayers’ rates. The rate peg applies to a council’s ‘general income’ in total. Councils can determine how to allocate this increase between different ratepayer categories. Individual rates are also affected by other factors, such as land valuations. Therefore, an individual ratepayer’s rates may increase by more or less than the rate peg amount.