2026-27 Special Variation and Minimum Rate Increase Applications
Local councils seeking a special variation to general income above the rate peg amount, or to increase minimum rate levels above the statutory limit, are required to submit applications to IPART for assessment.
Councils should contact IPART to discuss their application as early as possible in the process.
There are 2 special variation options under the Local Government Act:
- a single year increase under section 508(2), or
- a multi-year increase (of between 2 and 7 years) under section 508A.
Special variation and minimum rate increase applications should be submitted through IPART's Local Government Council Portal. You can find various User Guides on the IPART website detailed instructions on how to use the Council Portal.
OLG Guidelines
While IPART has been delegated responsibility for assessing and determining SV and MR increases, the Government has retained responsibility for setting the policy framework under which applications will be assessed.
Councils applying for an SV and/or MR increase must comply with the requirements set out by the OLG:
- SV – OLG Guidelines for preparation of an application for a special variation to general income
- MR Increase – OLG Guidelines for preparation of an application to increase minimum rates above the statutory limit
IPART Guidance materials
This year we have published a single guidance booklet that explains how to prepare an SV application - Special Variations: How to apply (‘booklet').
Previously, we published an information paper about community awareness and engagement for the SV and MR increase process. This information is now provided in section 4 of the booklet.
For minimum rates increase applications, guidance is provided in the Part A and Part B application forms, but you may also wish to review the booklet for certain information (such as section 4).
See past special variation and minimum rate increase applications and determinations.
Notification Letters
The OLG Guidelines urge councils to inform IPART if they intend to apply for a special variation. Councils intending to apply for a special variation or minimum rate increase can notify IPART of their intention to apply by 28 November 2025 via our Council Portal.
Notification Letters to IPART should include:
- the size of the intended special variation (percentage) or the minimum rate (dollar amount)
- the purpose of the funds for the special variation, and
- contact details for the application.
Application Forms
Application forms for 2026-27 are available:
- SV and/or MR Increase - Part A (A combined SV and MR Increase application is covered by a single Part A application form).
- Special Variation (SV) - Part B
- Minimum Rate (MR) Increase - Part B
Timeline
Below is an indicative timeline for the special variation and minimum rate increase applications for 2026-27.
Outcome | Date |
Notification of council's intention to apply for a special variation or minimum rates increase due | 28 November 2025 |
Special Variation applications due | 2 February 2026 |
Minimum Rate Increase applications due | 2 February 2026 |
Determinations announced for Special Variation and Minimum Rate Variations | May or June 2026 |
Assumed rate peg for 2026-27 and future years
Special variation applications
Councils applying for a special variation in 2026-27 should use the 2026‑27 rate peg set by IPART in their applications. The 2026-27 rate pegs have now been released. The OLG Guidelines advise that an assumed rate peg of 2.5% should be used for 2027‑28 and future years. If a council elects to use a different assumed rate peg percentage, the rationale for doing so must be explained in its Part B application form.
Long term financial plan reviews and updates
We encourage councils that are updating or reviewing their Long Term Financial Plans to refer to the Office of Local Government’s Integrated Planning and Reporting Handbook for local government in NSW, and seek advice from the Office of Local Government where necessary to determine their revenue forecasts for rates and charges for future years.
How can the community engage with IPART?
Is your council talking about a special variation?
A council must actively engage with its ratepayers if it is thinking about applying for a special variation. This process starts before the council makes an application and some councils may already have started.
We encourage ratepayers to provide their feedback to their council during the council’s consultation process. Please take a look at our fact sheet to help you understand and guide you through this process.
How can you engage with IPART?
After we receive applications from councils in February 2026, IPART will open a public consultation process. You will be able to view and provide feedback on the councils’ applications. Please refer to our fact sheet with more information on how to make a submission about a special variation application.
You can subscribe to receive email updates about the special variations process for 2026-27 including when the consultation period opens. You can subscribe here.
Enquiries
Any enquiries regarding special variation or minimum rate applications should be directed to Regina Choi by email to regina.choi@ipart.nsw.gov.au or by phone on (02) 9019 1942.