The Independent Pricing and Regulatory Tribunal has set the 2021-22 rate peg for NSW councils at 2.0 percent.
The rate peg is the maximum percentage amount by which a council may increase its general income for the year. In 2020-21, it was set at 2.6 percent.
The 2021-22 peg was calculated by taking the increase in the Local Government Cost Index (LGCI) to June 2020 of 1.8 percent, setting the productivity factor to 0.0 percent, and adding an adjustment of 0.2 percent for the costs of the 2021 local government elections.
Local Government NSW (LGNSW) President Linda Scott said the new peg “will certainly go some way to helping local government continue to provide the services and maintain the infrastructure so critical to our communities right now.
“[But] it won’t allow then to mitigate against the additional costs incurred following extended drought, bushfires, floods and Covid.”
IPART has advised that councils applying for a special variation in 2021-22 should use the 2021‑22 rate peg in their applications, and an assumed rate peg of 2.5 percent for 2022‑23 and in future years.