It is longstanding NSW Government policy for local councils’ general income to increase each year in line with council costs. This is achieved by allowing general income to increase in line with the ‘rate peg’.

NSW Government policy also allows councils to seek to increase their general income by more than the rate peg through the ‘special variations’ process. General income mainly includes rates income. It excludes many other council revenues such as grants, user fees and charges, fines, developer contributions, local government charges for water supply and sewerage and for waste disposal.