Submission to North Sydney's Special Rate Variation Application
Re: North Sydney Special Rate Variation Application
Dear Members of the Independent Pricing and Regulatory Tribunal (IPART),
I write on behalf of constituents concerned about North Sydney Council’s application for a Special Rate Variation (SRV) of 87.5% over two years. This proposal has raised significant concerns among residents who have continued to raise concerns relating to the cumulative effects of inflation, rising mortgage repayments, and increased insurance and energy costs.
Community Engagement and Transparency
In accordance with the Special Variation Guidelines, any proposed SRV must be supported by extensive, meaningful and transparent community engagement. However, many residents have expressed to me that they were unaware of the full scale and long-term implications of the proposed rate increase.
I urge IPART to closely examine the effectiveness and reach of the Council’s community consultation process, and whether it has genuinely captured the community’s views and level of support.
Financial Justification and Efficiencies
IPART’s assessment criteria rightly require councils to demonstrate that any proposed increase is essential and that alternative options have been exhausted. I ask that you examine that North Sydney Council has thoroughly considered internal savings, service reviews, and efficiency measures prior to pursuing a rate variation of this magnitude.
A rate increase of nearly 90% is extraordinary and must be matched by exceptional justification. It is critical that the Council’s financial strategy, long-term asset planning, and operational decisions clearly show that the SRV is both necessary and proportionate.
Impact on the Community
Residents across North Sydney are diverse in background and circumstance. A steep rate increase of this size risks placing an unmanageable burden on vulnerable community members, including retirees, renters, young families and those on fixed incomes.
The long-term financial sustainability of local governments is vital, but it must be balanced with fairness and community capacity to pay. A phased, modest approach to rate increases is far more appropriate and aligns with both the intent and spirit of the IPART guidelines.
Conclusion
I respectfully ask IPART to closely consider:
- Whether North Sydney Council’s proposal is fully integrated with its IP&R documents;
- Whether community consultation has been inclusive, timely, and transparent;
- Whether financial need has been clearly demonstrated and alternative options exhausted;
- Whether the scale of the increase is reasonable and equitable, in light of community capacity and economic pressures.
Thank you for your careful assessment of this application.
Zali Steggall OAM MP
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