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Proposal for a Minimum Rate Variation

​Consultation is now closed

Ran from Wednesday 22 January 2014 to 5pm Wednesday 5 March 2014

Contact:

Executive Manager - Corporate Services
Ph: (02) 9911 3510
Email

Events:

Staffed Exhibition
Lane Cove Plaza
5pm, Thursday 13 February 2014

Council Staff were available to personally answer any enquiries regarding the minimum rate variation proposal.

Background

The Lane Cove Local Government Area (LGA) is currently experiencing significant growth with a requirement to provide 3,900 new dwellings by 2031. With this growth it is expected that there will be increased demand for the provision of a wide range of services and facilities by Council.

The majority of new dwellings in the LGA will be home units. Therefore, under the current rating structure, the number of ratepayers on the minimum rate will increase significantly in comparison to the number of other residential ratepayers. In terms of equity, a smaller proportion of residential ratepayers (generally those in houses) will effectively carry a greater percentage of the rating burden despite all ratepayers having the same access to services and facilities provided by Council.

Overview

Council is considering a proposal to apply to the Independent Pricing and Regulatory Tribunal (IPART) for an increase in the minimum residential rate.

The purpose of the proposal is to ensure equity in sharing the rating burden, as at present 46% of residential rate payers, predominately home unit properties on the minimum rate of $538, contribute 21% of rate income.

This proposal will not increase the amount of income Council receives as ratepayers not on the minimum rate will receive a reduction in their Rates.

Under the proposal, minimum rates will increase by 7% per annum for the next five (5) years. The increase will be in addition to the normal rate cap increase each year which has been set at 2.3% for 2014/15. This will mean that for 2014/15 the minimum residential rate will increase by 9.3% to $588.

Related Documents

What Next?

IPART approved Council's application for a minimum rate variation in June 2014.