The Independent Pricing and Regulatory Tribunal (IPART) has approved Queanbeyan-Palerang Regional Council’s application for a rate variation of 18 per cent per year for three years – 64.3 per cent over three years. This will allow QPRC to raise up to an additional $42.7 million in total general income (above the rate peg) over the period 2023–24 to 2025–26.

The rate variation will be in place from 1 July, and applies to the total pool of general rates that council collects.

“This rate variation addresses our long-term financial sustainability and ensures we can keep providing valuable services like essential road maintenance and upgrades, providing community facilities, libraries, sports fields, parks, amenities, and community events,” Mayor Kenrick Winchester said.

QPRC announced in February that it would apply for a rate variation.

“IPART has thoroughly reviewed our application, considered the feedback that they received from the community, and approved the application in full,” Mr Winchester said.

• Queanbeyan-Palerang Regional Council to apply for Special Rate Variation (9 February)
• Queanbeyan council may increase rates to shore up finances (16 November 2022)
• Queanbeyan: More time to consider Special Rate Variation (23 December 2022)

Every year, IPART decides a rate peg for each council in NSW which sets the maximum amount councils can increase the general income they collect from ratepayers (rates income). For 2023-24, IPART set the base rate peg for 2023-24 at 3.7 per cent. There is also an allowance for the level of population growth, meaning some councils have rate pegs up to 6.8 per cent.

If the elected councillors agree that a council needs additional revenue, the council can apply to IPART for a special variation (SV) to increase rates income by more than the rate peg. In February and March this year, 17 councils applied for increases in rates income above the rate peg through special variations. Mr Winchester said this “shows the demands on local government’s long-term financial sustainability”.

In its report on the QPRC Special Variation application, IPART noted concerns that the special variation would make it harder for some residents to pay their rates, or that QPRC had not effectively managed its finances or spent appropriately, but balanced these factors with the need to maintain infrastructure and provide community services.

“Without the SV,” IPART stated, “the council’s operating expenditure would exceed its operating revenues, with this operating deficit forecast to worsen over time – which is unsustainable. The council needs the SV to establish a sustainable financial base to deliver services and infrastructure to the community.”

QPRC considered three scenarios, but opted for the middle option: to maintain core services, reduce non-core services, and find $5.5 million worth of savings each year to remain financially viable.

“Council chose this option in recognition of the significant feedback we received both about how difficult increasing rates would be on the community, but also how important council services are to the community, particularly in our rural and more remote areas,” Mr Winchester said.

“In our budget this year, we prioritised funding for our local roads, but we did have to defer aspects of our asset renewal program and some new footpath, playground and environmental projects until we can afford it. We remain very reliant on grant funding for some of these important upgrades. Council will continue to implement efficiency measures, and we will be reviewing the rate structure in 2023-24 to make sure it is equitable across the local government area.”

Several projects have been deferred pending a formal review and securing grant funding, including the Monaro Street Upgrade and Stage 2 of the Regional Sports Complex. Council will also be able to sell property assets when buildings become vacant after the new Council Cultural and Civic Precinct building is completed and staff are relocated.

Council will extend the additional $40 pensioner rebate – previously available only to Queanbeyan pensioners – to all eligible pensioners in QPRC, so they can receive rebates up to $460 off their general rates and water and sewer charges.

“If anyone is finding it difficult to make payments, I encourage them to get in contact with council to talk about their options,” Mr Winchester said. “We have a financial hardship assistance policy that allows ratepayers who may be struggling with making payments to set up a longer, interest-free repayment period.”

QPRC’s draft 2023-24 Operational Plan, Revenue Policy, Fees and Charges have recently been on exhibition for public comment, Mr Winchester said. These plans were developed on the basis that the rate variation would be approved, and will be presented to council with community feedback for review at its 28 June council meeting.