As at the end of July 2023, the nominal local government discount rate is 3.2% and the real discount rate is 0.6%.
We have included the calculation of the local government discount rate in the WACC model spreadsheet, available on our website.
Every six months, IPART publishes the discount rate we recommend councils apply if they are using a net present value (NPV) approach to calculating local infrastructure contributions.
Our method of calculating the discount rate is outlined in our August 2018 Technical Paper, Modelling local infrastructure contributions in a present value framework.
Current
Fact Sheet - Local Government discount rate - August 2023
Previous
Fact Sheet - Local Government discount rate - February 2023
Fact Sheet - Local Government discount rate - August 2022
Fact Sheet - Local Government discount rate - February 2022
Fact Sheet - Local Government discount rate - August 2021
Fact Sheet - Local Government discount rate - February 2021
Fact Sheet - Local Government discount rate - August 2020
Fact Sheet - Local Government discount rate - February 2020
Fact Sheet - Local Government discount rate - August 2019
Fact Sheet - Local Government discount rate - February 2019
Fact Sheet - Local Government discount rate - August 2018
Fact Sheet - Local Government discount rate - February 2018
Fact Sheet - Local Government discount rate - August 2017
Fact Sheet - Local Government discount rate - February 2017