News

20 March 2025

Dear Members of the Independent Pricing and Regulatory Tribunal (IPART),

I write on behalf of the residents of Warringah, many of whom have raised concerns regarding Northern Beaches Council’s application for a Special Rate Variation (SRV) of 39.6% over three years. This proposed increase comes at a time of sustained cost-of-living pressures and must be carefully assessed in light of community impact and the requirements under the Integrated Planning and Reporting (IP&R) framework.

Community engagement and awareness

The Guidelines for Special Variation Applications highlight the need for councils to undertake extensive and genuine community engagement, particularly regarding residents’ willingness and capacity to pay. Many constituents have told me they were not fully aware of the scope or detail of the proposed increase, suggesting that the consultation process may not have met the standard expected under the Guidelines. It is vital that the Council clearly demonstrates that it has informed and involved the community in its decision-making and financial planning—particularly within its
adopted Community Strategic Plan, Delivery Program and Long-Term Financial Plan.

Assessment of financial need and efficiency

IPART requires councils to establish that a rate variation is necessary, after all alternative funding options and cost-efficiency measures have been considered. I urge IPART to ensure that Northern Beaches Council has adequately explored internal expenditure reviews, cost reductions and service prioritisation before requesting this substantial increase.

The NSW Audit Office and IPART have both previously emphasised the importance of aligning expenditure growth with long-term revenue growth. A detailed explanation of how this variation is essential to the Council’s financial sustainability, and how it fits within the Resourcing Strategy, must be made transparent.

Impact on ratepayers and community equity

The Northern Beaches community includes a diverse range of households—from retirees and single-income families to small business owners and renters. Many are already experiencing financial hardship, and this rate increase will disproportionately affect those with the least capacity to absorb it.
I urge IPART to apply rigorous scrutiny to the equity impacts of this variation. It must be demonstrated that the proposed increase will not create undue hardship and that any changes to the rating structure are justifiable under the principles of fairness and affordability.
In line with the Special Variation Guidelines and IPART’s assessment criteria, I respectfully ask that the following areas be thoroughly assessed:

• Whether the proposed SRV is clearly integrated into Council’s adopted IP&R
  documents;
• Whether community engagement has been sufficiently robust, accessible and
  transparent;
• Whether internal cost-efficiency measures and alternative revenue options have been exhausted;
• Whether the increase is equitable and reasonable, considering the current economic climate and residents’ capacity to pay.

Thank you for your careful consideration of this matter. I remain committed to working with all levels of government to ensure sustainable funding pathways for local councils that do not come at the expense of community wellbeing

Zali Steggall OAM MP