How Bathurst's potential supersized rate hike compares with other council areas

IN the debate about a potential supersized rate increase, it has been said that Bathurst Regional Council isn't the only council to consider it.

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Councillor Marg Hogan has made that argument in her support of seeking a Special Rate Variation, saying: "Other councils have successfully navigated the path this way and I see no reason why we can't as well."

She's isn't wrong.

Bathurst council senior staff have recommended a cumulative increase of 68.6 per cent over two years - although other options are on the table - and other councils in NSW have successfully sought similar increases.

If this option is sought, it will mean Bathurst Regional Council rates will increase by 43.5 per cent in 2024-25, and then by a further 17.5 per cent in 2025-26.

But how does this compare with what other councils have done since the start of the COVID-19 pandemic?

How Bathurst's potential supersized rate hike compares with other council areas

Lithgow

Lithgow City Council was approved for a special variation of 45.7 per cent for 2023-24, which is higher than what could be imposed on Bathurst ratepayers in 2024-25.

However, Lithgow's increase was only over one year, whereas Bathurst Regional Council is seeking a higher cumulative increase over two years.

Tenterfield

An almost identical case to Lithgow is Tenterfield Shire Council.

The Independent Pricing and Regulatory Tribunal (IPART) approved a special variation of 43 per cent for 2023-24 for that council.

Again, though, it was a one-year increase.

Multi-year increases

Since 2020-21 (the first full financial year of the pandemic), four councils - Armidale Regional, Queanbeyan-Palerang, Strathfield and Walcha - have been approved for similar or higher cumulative increases than the recommended option for Bathurst.

Only Strathfield was higher than 68.6 per cent, and all four of the councils planned to spread their rate increases out over three or more years, compared with Bathurst's two.

This means ratepayers in those council areas would be seeing their rates grow in smaller increments.

Armidale Regional: 58.8 per cent over three years made up of increases of 16.67 per cent, 16.67 per cent and then 16.66 per cent
Queanbeyan-Palerang: 64.3 per cent over three years made up of increases of 18 per cent, 18 per cent and then 18 per cent
Strathfield: 92.83 per cent over four years made up of increases of 35.1 per cent, 13 per cent, 17.5 per cent and then 7.5 per cent
Walcha: 57.74 per cent over three years made up of increases of 36.5 per cent, 8 per cent and then 7 per cent.

For each of these councils, the increases would begin from the 2023-24 financial year.

It is important to note that Armidale Regional Council also received a 10.5 per cent special variation in 2021-22 to make an existing temporary special variation permanent.

What happens now for Bathurst?

Bathurst Regional Council started community engagement on August 23, 2023 on a potential application to IPART for a permanent special rate variation.

While senior staff had recommended a 68 per cent increase over two years, the motion adopted at the August 16, 2023 council meeting will see consultation conducted on four options.

The options are as follows:

a base case of 3.5 per cent in 2024-25; 2.5 per cent in 2025-26; 2.5 per cent in 2026-27; and 2.5 per cent in 2027-28.
58.5 per cent in 2024-25; 2.5 per cent in 2025-26; 2.5 per cent in 2026-27; and 2.5 per cent in 2027-28. This is a cumulative increase of 58.5 per cent over the SV period.
43.5 per cent in 2024-25; 17.5 per cent in 2025-26; 2.5 per cent in 2026-27; and 2.5 per cent in 2027-28. This is a cumulative increase of 68.6 per cent over the SV period.
33.5 per cent in 2024-25; 12.5 per cent in 2025-26; 7.5 per cent in 2026-27; and 7.5 per cent in 2027-28. This is a cumulative increase of 73.6 per cent over the SV period.

The feedback will be reported to a council meeting some time in November, 2023, at which point councillors will be asked whether or not to proceed with making an application for a permanent SRV to IPART.

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