Why do rates increase?

Rates and charges are usually increased each year to offset the increased costs of providing services to the community.

Councils in New South Wales are restricted by legislation as to how much they can increase rates each year. The Independent Pricing & Regulatory Tribunal (IPART) assesses the increase in costs and determines the maximum percentage that rates can increase.

An increase in services costs includes:

  • Materials for road making and other infrastructure provision, maintenance and repair.
  • Equipment, plant and services purchase, maintenance and hire.
  • Contracts and labour.
  • Statutory charges paid to other levels of government and its instrumentalities.
  • Other outgoings for finance, insurance and utilities costs etc.