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Special Rate Variation Update

Welcome

We want to share with you an update on Council's application for a Special Rate Variation.

How Your Rates Are Set

Rates are Council’s main form of income and are used to fund community services and infrastructure. For the financial year 2023/24, residential property rates are set with a combination of a base amount of $746 and an amount based on the land value. Business rates are set based on land value, with a minimum contribution of $779. Land values are calculated by the statutory independent valuing authority, the NSW Valuer General, which operates with no involvement from Council. Valuations are updated approximately every three years, most recently in 2022. The majority of land values in the Woollahra Municipality have increased over this period, on average by 65%.

View the Flyer: An important update on your rates(PDF, 1MB)

Special Rate Variation in 2023/24

The Independent Pricing and Regulatory Tribunal (IPART) limits the amount of annual income councils can generate from rates (called rate pegging), unless a Special Rate Variation application (SRV) is approved. This year the rate peg was capped at 3.7%.

In response to increasing costs, budget deficits over recent years and with the intention of securing long term financial security, Council lodged a SRV application in February 2023, which was approved by the IPART in June 2023. This brings the total increase to 13.7% and this has been applied to all Council rates. The SRV will help Council become financially sustainable and enable the delivery of a range of priority community projects over the next 10 years (see below).

Due to the diversity of property values in the Woollahra Local Government Area, SRV-related rate increases will differ for each property. On average, residential property rates will increase by $212 p.a for residential and $462 p.a for businesses.

Priority projects to be undertaken with SRV funding over 10 years:

Protecting our Heritage $1.4m Implementing projects that will continue to protect our heritage.
Recreation and trees $10.3m Improving parks and recreational areas.
Active Transport $7.3m Upgrading footpaths and making active transport a safe, easy and health option.
Rose Bay car park redevelopment $11.6m to help finance the project.
Climate Change Adaptation Measures $13.9m mitigating the impacts on climate change on our stormwater network.
Improvements to Service $4.4m providing more responsive online customer experiences.

Progress updates on these projects will be available in Council's Annual Report. Current and previous updates on Council's budget and financial sustainability are available on our website.