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IPART has completed our review of the rate peg to include population growth

We have completed our review of the local government rate peg to include population growth.  Our final report is here.

The NSW Government asked IPART to recommend a rate peg methodology that allows the general income of councils to vary in a way that accounts for population growth.

Our methodology will allow growing councils to provide services to their communities

The amount councils currently receive in rates is usually not enough to cover the increased costs associated with population growth.

The methodology we have recommended will ensure councils maintain their rates income on a per capita basis as their population grows. This will enable councils to provide services to their growing communities.

Our methodology would have increased councils’ income by 1.5%

We modelled the impact our methodology would have had on councils over the past 4 years and found it would have increased the total general income of the sector by $287 million or 1.5%. We have published a fact sheet explaining our modelling here

We found the benefit to councils would increase and compound over time. Our methodology will allow rates revenue to increase to better cover the costs of population growth from 2022-23.


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Key contact
Sheridan Rapmund
02 9290 8430