CRG Communique #2 2025
The Council Reference Group (CRG) met on 23 June 2025 to discuss the issues it proposed the Tribunal consider for the 2026-27 rate peg.
The CRG considered the following issues as set out below:
- Adjustments for Valuer General costs: the CRG discussed whether to include adjustments for valuation fee costs in the rate peg, including increased costs associated with obtaining valuations for Commonwealth land under section 9A of the Valuation of Land Act 1916 (VOL Act).
- Background: Following the recent IPART review of prices for Valuer General’s services to councils from 1 July 2025, and the introduction of the new single (postage stamp) price for all councils, Metropolitan and Coastal zone councils would face increases in valuation fees while Sydney City and Country zone councils would experience decreases.
Consequently, should an adjustment for changes in valuation costs be made to the rate peg, some councils would experience an increase in the rate peg, while others would experience a decrease. - An adjustment for the changes in the fees for the Valuer General’s land valuation services to councils would require reliable data. The group discussed whether valuation fee costs data could be included in the financial data return that the Office of Local Government (OLG) collects, or alternatively be provided annually by the Valuer General.
- The CRG also considered the materiality of this adjustment, noting it may be negligible if considered as a separate item for most councils. An option discussed was to aggregate this with other potential rate peg adjustments, which may increase the materiality for it to be captured in the rate peg.
- The CRG discussed that some councils have incurred additional costs where the Valuer General has commenced charging councils additionally for valuations of Commonwealth property within their area as a private valuation under section 9A of the VOL Act. CRG members undertook to explore further what information is available, including what happens in other jurisdictions.
- Background: Following the recent IPART review of prices for Valuer General’s services to councils from 1 July 2025, and the introduction of the new single (postage stamp) price for all councils, Metropolitan and Coastal zone councils would face increases in valuation fees while Sydney City and Country zone councils would experience decreases.
- Election costs, including by-election costs: the CRG members generally supported an option to smooth election costs over 4 years (ie. for the rate peg to include 25% of election costs each year, instead of adding a temporary adjustment for the full election costs every 4 years and removing it the following year). CRG members indicated that this approach aligns with their councils’ accounting practice, where they accrue funds for the election every year. However, an adjustment may need to be made for differences in the actual election costs incurred where these are materially different to historical or expected costs.
- For by-election costs, CRG members discussed the variability between councils in the frequency and the size of the costs incurred and agreed further information would be required for an adjustment.
- Dam safety levy: the CRG discussed the introduction of the dam safety levy and considered this to be a cost-shift from State to Local government. Members discussed whether the levy could be recovered through a rate peg adjustment or funded through council water charges. CRG members are to consider what information is available, including whether dams are funded by the General fund or Water fund, how this information can be obtained and the materiality of the levy.
- Interment services levy: CRG members presented that many councils who operate cemeteries will be impacted by the introduction of the interment services levy, which commenced for all cemetery and crematoria operators from 1 July 2024. The CRG discussed that while the cost of the levy could be passed through when new interment services are provided or paid for, councils are currently required to cover the cost of the levy associated with existing prepaid interment services and identified this as another cost-shift to councils. CRG members will consider what further information is available.
The next CRG meeting is scheduled for around mid-August 2025.
Council Reference Group members and attendees
In attendance at the Council Reference Group meeting on 23 June 2025:
- Andrew Butcher, President, NSW Revenue Professionals
- Anthony McMahon, CEO, Bega Valley Council
- David Reynolds, CEO, Local Government NSW
- George Cowan, General Manager, Narrandera Shire Council
- Glen Magus, Director Corporate Support, Hornsby Council
- Ian Clayton, Manager Property and Revenue, Mid-Western Regional Council
- Kevin Nguyen, Office of Local Government (observer)
- Michael Chorlton, Director Corporate Services, Tweed Shire Council
- Richard Sheridan, Chair of the Local Government Finance Professionals Network, and Director City Performance, Bayside Council
- Ritika Babbar, Office of Local Government (observer)
- Robert Hay, NSW Revenue Professionals
- Seon Millsteed, Revenue Accountant, Tamworth Regional Council
- Shaun McBride, Chief Economist, Local Government NSW
- Tina Baldock, Director Sector Policy, Office of Local Government (for part)
- Vicki Mayo, CEO, Local Government Professionals (for part)
- Wayne Rogers, Director Corporate Services, Blacktown City Council