Making rates fairer across the Inner West

Council at its meeting on 29 June 2021, decided to adopt a Rating Structure to harmonise rates as required by the NSW Government, over eight (8) years commencing 1 July 2021 including:

a) Reallocation of $600,000 of rate revenue from Business General category, to be evenly levied across the shopping mall subcategories

b) 100% harmonisation of minimum rates as follows:

1. Residential minimum $850
2. Business general minimum $820

Council also noted that the budget includes a Domestic Waste Management Charge subsidy which will return $5.8M to ratepayers in 2021/22 and help to smooth out changes in rates caused by Rates Harmonisation.

For more information, visit Council's rates page

Council has welcomed the Local Government Amendment Bill 2021 which allows us to harmonise rates over eight years.

The Independent Pricing and Regulatory Tribunal (IPART) has approved Council’s application for a minimum rate. IPART found that Council’s proposal was reasonable and fairly considered the needs and concerns of residents.

For the year 2021-22 the minimum ordinary residential rate approved by IPART is $850.00 and minimum ordinary business rate is $820.

At its follow up meeting on Monday 1 March 2021, Council passed the following motion:

THAT Council:

1. Writes to the Premier, Treasurer, the Minister for Local Government and the Independent Pricing and Regulatory Tribunal (IPART) noting:

a) that we are being forced to harmonise rates and many in our community see this a unfair;

b) harmonisation will lead to a major increase in rates for some residents in our community;

c) if they insist on harmonisation then we must be able to phase the increases over 4 years and observe they not yet legislated to allow us to do this.

2. Include in the letters to IPART the Council’s community engagement report on rates harmonisation as well as our preference for the minimum rates tabled below, should the rates harmonisation have to proceed. Further, that Council request from the Local Government Minister a specific timeline for when the legislative changes to the rating system will be tabled in the Parliament;
Minimum Rates to apply from 1 July 2021 –

• Residential - $850

• Business – General - $820

• Business – Industrial - $820

• Business Shopping Malls - $820

• Business Airport - $820

3. Notes that the NSW Government is yet to adopt key recommendations of a 2016 IPART Local Government Rating System report which put forward a detailed review of the local government rating system and how to make the system fairer and more efficient;

4. Responds in writing to everyone who made a submission to Council about the proposed changes to the rating structure, advising them of this resolution;

5. Ensures all future communications to residents about rates harmonisation include reference to Council’s opposition to the NSW Government’s council rate harmonisation process; and

6. Notes that a failure to set new minimum rates will result in a default minimum rate of $565 which will not equitably distribute the rate burden across the former council areas or require the majority of new ratepayers to contribute adequately to the cost of services made available by Inner West Council.

Want to know more?

• Read the Council report
• View the meeting minutes

On Tuesday 23 February 2021 Council met to discuss rates harmonisation without reaching a resolution.

Council will meet again at an extraordinary meeting on Monday 1 March 2021 to continue the discussion.

Want to know more?

• View the meeting agenda
• Visit Council meeting page

Did you provide feedback about rates harmonisation? Find out what we heard in the Engagement Outcomes Report. The report will be considered by Council at an Extraordinary meeting.

Additional information:

• Appendix online comments rates harmonisation
• Appendix written submissions rates harmonisation

Visit Council's meeting page for further details.