Council Endorses 2-Year Rate Rebalancing Program to Improve Fairness

Published on 15 December 2023

A 2-Year Rate Rebalancing Program will come into effect from the 2024/25 financial year onwards, following endorsement at the December Ordinary Council Meeting.

The program’s proposed length of three years was reduced to two on the recommendation of Cr Tony Ciccia who felt that with the announced IPART rate peg now at 4.5%, a third year would be “going too far”. The assumed rate peg during public consultation was 2.5%.

The new adopted ordinary rate structure, aimed at improving fairness and equity across the rating categories, will see the rate peg redistributed from Farmland onto Business for two years (only). Further, Council will introduce two new rating sub-categories “Business Industrial – Leeton” and “Business Industrial – Whitton”. Residential ratepayers will see no change to the proportion of rates paid overall (beyond the annual rate peg).

As a result of the two-year rate peg ‘holiday’, farmers will see a reduction in the proportion of rates paid overall by that category. On the other hand, the business category of ratepayers will see an increase in the proportion of rates paid overall as both the usual rate peg plus the farmland equivalent rate peg will be apportioned to them. The increase will be split 25/75 between general and industrial businesses. 

From Year 3, all rating categories will go back to “normal”, having exactly the same IPART rate peg applied to each.

Mayor Cr Tony Reneker said the aim of the two-year program is to get the rating categories closer to the NSW average for similar sized Councils.

“Currently, compared to similar sized councils across NSW, Leeton Shire farmland average rates are higher than the NSW average and business average rates are significantly lower than the NSW average.”

“It’s important to note that the new rating structure will not generate any additional revenue to Council (beyond the annual rate peg). It’s solely designed to rebalance the rates more fairly and equitably between all rating categories,” he added.

The new rating structure will apply from 1 July 2024.

ENDS

MEDIA CONTACT:

Cr Tony Reneker
Mayor
T. 0448 535 004
E. tonyr@leeton.nsw.gov.au

Jackie Kruger
General Manager
T. (02) 6953 0911
E. jackiek@leeton.nsw.gov.au