What are Special Variations
Every year IPART sets a rate peg for each council in NSW which is the maximum amount by which councils can increase the general income that they collect from ratepayers (rates income).
If the elected councillors agree that a council needs additional revenue, the council can apply to IPART for a special variation to increase rates income by more than the rate peg amount. We assess special variation applications against specific criteria set out by the Office of Local Government (OLG), as outlined below.
Special variations can be used to increase rates for between 1 and 7 years, and can be permanent or temporary.
IPART’s special variation determination sets the maximum amount by which a council can increase its general income. It is then up to the council to decide whether to implement the full increase permitted and how to allocate that increase across its ratepayer base in accordance with the regulatory framework.
A summary of our special variation decisions from 2015-16 can be found at Summary table of SV decisions.
How can the community engage with IPART?
Special Variation and Minimum Rates increase review page for 2027-28 is available here.
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 out 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 2027, 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 on a special variation application.
You can subscribe to receive email updates about the special variations process for 2027-28 including when the consultation period opens. You can subscribe here.
How special variation applications are assessed
IPART requires councils to actively engage residents in discussions about the proposed increase above the rate peg. Councils can do this with public meetings and other community engagement methods that suit their population. IPART will consider how effectively each council has engaged with its community before determining its application to increase rates income above the rate peg. Councils need to show IPART there is:
- a demonstrated need for higher increases to charges
- community awareness of their plans
- a reasonable impact on ratepayers
- a process to exhibit relevant council documents to the public
- a history of well-documented council productivity improvements and cost containment strategies
In addition to the council’s evidence, we will assess any other information we consider relevant, including submissions from ratepayers. Further information regarding the assessment criteria can be accessed below:
- 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 can wholly or partially approve or reject a council’s application. Our decision and reasons will be published on our website.
Past special variation decisions are available here.