Frequently Asked Questions

IPART are the independent pricing regulator for water, energy, public transport and Local Government. They set the allowable rate cap and approve any Special Rate variations. IPART will either approve or nor approve this SRV application.

The rate peg is the maximum percentage amount a council can increase its income from rates. Council’s requiring additional revenue can apply to IPART to be allowed to levy increases above the rate peg.

The rate peg is made up of two components: -

1. The Local Government Costs Index (LGCI) which is designed to reflect the costs that councils incur when providing goods and services to their communities, including labour, construction, and administration cost - 3.7% 

2. Residential population growth (specific to each Council) to cover the increase costs associated with delivering local government services in growing the council areas - 0.3% 

Council sets its budget for services and capital works, subtracts expected income and then sets its rates. However, it must limit its spending to what it can afford within the rate cap. Council then spreads the number of rates payable amongst property owners via a pre-determined formula based on land values.

Find out more about how your rates are calculated on Council’s website at tweed.nsw.gov.au/property-rates/rates-charges/rates-explained/land-valuations and watch the easy-to-understand animated video.

You can also estimate your rates for 2023/2024 using the General Rate calculator (both the 4% rate peg and the proposed 2.35% Special Rate Variation increase).

The general rate is linked to your land valuation. It does not include other charges such as water access, sewage access and waste collection, which are calculated separately and added to your rates bill. 

Tweed Shire Council's Revenue Team can also assist with rating enquiries. Call the Contact Centre on 02 6670 2400.

You can use the General Rate calculator to obtain an estimate of the 2023/24 general rate (both 4% rate peg and the proposed 2.35% Special Rate Variation increase).

There are no new charges that will appear on your rates notice.

Council generally assesses and determines its annual rates and charges increases during February/March of each year. Draft rates and charges amounts are then adopted by Council in April for public exhibition.  Following consideration of feedback received by the community, final rates and charges are set by Council in June of each year. 

Because of the need to apply to IPART for an above pegging increase, this part of the process has commenced earlier than normal. Accordingly, Council has not yet considered what increases are to apply to Water, Sewer and Waste charges.

Council will incur new additional costs that are outside of Councils control and are crucial to the delivery of Council services. In addition, the NSW Government has taken away Council’s ability to charge the Environmental Enforcement Levy, reducing Council’s annual income by $288,954.

To maintain our current levels of service, we need to raise more income to fund the additional costs of these mandatory items:

• Improve Cyber Security to protect your data – $268,000
  This is required to protect Council’s network and digital information to comply with the Essential 8 mitigation strategies as recommended by the Australian Cyber Security Centre.
  
  
• Make it easier and safer to do business with Council by upgrading core IT Business Systems – $500,000
  Council is facing increased information technology costs as we must retire our on-premises corporate systems and move to a cloud hosted software solution.

• Ensure people and property are protected despite increased Insurance Premiums - $151,000
  Insurance premiums on Property, Public Liability and others insurance coverage are estimated to increase.

The following additional item that the SRV will fund is required, but is not mandatory:

• Reduce Development Application processing times – $360,000
  Council needs additional funds to increase staff resources to help reduce the long DA processing times caused by a range of complexities and resource challenges associated with the NSW planning system.

Tweed Shire Council’s Revenue Team can assist with rating enquiries. Call the Contact Centre on 02 6670 2400. 

Council services are outlined in the Delivery Program 2022 - 2026. 

The Delivery Program 2022 – 2026 and annual operational plans detail the delivery of planned projects and services for each year, aligning each action to a budget and outlining any other resourcing issues. 

Each of the services contained within this plan contain a graph outlining the cost of the service and the sources of funding utilised to cover this cost.

Through its rate-pegging policy, each year the NSW government determines the percentage figure councils can increase their general rate income.  If a council wants to apply for a larger increase a Special Rates Variation application needs to be lodged with the Independent Pricing and Regulatory Tribunal (IPART).

No. The Special Rate Variation does not affect service charges such as water, sewer, Waste and Stormwater Drainage. It is only applied to the General Rate line on your bill.

Seventeen NSW local Councils have notified IPART of their intention to increase rates in 2023-24 .

Details can be viewed at: https://www.ipart.nsw.gov.au/Home/Industries/Local-Government/Reviews/Special-Variations-Minimum-Rates/Special-Variations-Minimum-Rates-2023-24.  

What will the Special Rate Variation fund?

Council will incur new additional costs that are outside of Councils control and are crucial to the delivery of Council services. In addition, the NSW Government has taken away Council’s ability to charge the Environmental Enforcement Levy, reducing Council’s annual income by $288,954.

To maintain our current levels of service, we need to raise more income to fund the additional costs of these mandatory items:

• Improve Cyber Security to protect your data – $268,000
  This is required to protect Council’s network and digital information to comply with the Essential 8 mitigation strategies as recommended by the Australian Cyber Security Centre.
  
  
• Make it easier and safer to do business with Council by upgrading core IT Business Systems – $500,000
  Council is facing increased information technology costs as we must retire our on-premises corporate systems and move to a cloud hosted software solution.

• Ensure people and property are protected despite increased Insurance Premiums - $151,000
  Insurance premiums on Property, Public Liability and others insurance coverage are estimated to increase.

The following additional item that the SRV will fund is required, but is not mandatory:

• Reduce Development Application processing times – $360,000
  Council needs additional funds to increase staff resources to help reduce the long DA processing times caused by a range of complexities and resource challenges associated with the NSW planning system.

An increase in Council’s revenue through a Special Rate Variation of 2.35% above the rate peg amount of 4% represents an average rate rise of $37.55 for the year — or on average of 72 cents a week — per ratepayer.

If the proposed rate increases do not eventuate, a reduction in services and the capital works program would need to occur. For council to be financially sustainable in the long term it must achieve at least a break-even result in its general fund.  If Council does not get to this position, it will not be able to deliver the current service levels and potentially not undertake the timely renewal of essential infrastructure like roads, sporting fields, playgrounds and community facilities.

 Some of the services that may be affected include the potential to close Kingscliff Library, reduce road and park maintenance levels including pothole repair, reduce opening hours at Council’s three aquatic centres, reduce the scale of Council’s new animal pound – among other service reductions. 

A full list of service reductions/cuts can be found here.

Additional staff resources are to assist with meeting the NSW planning system and processing times and hopefully to reduce the amount of legal action taken by applicants.

Staff are working efficiently and continue reviewing work practices to optimise work practices. It is important to note compliance requirements have become more onerous requiring additional staffing costs.

It is unfortunate the NSW Government has removed our ability to charge an Environmental Enforcement Levy yet still expects us to undertake compliance. 

We also could not foresee the additional insurance premiums and rising cost of services following the COVID-19 pandemic and last year’s flood, or the huge increase in DAs as a result of the pandemic. 

Cyber security is also becoming a crucial issue in managing data and we need to ensure our IT systems are as up to date and secure as possible.

The service reductions identified through this process will apply to the 2023/24 and future financial years. Likewise, the SRV will increase the permissible rateable income from the 2023/24 financial year and this increase to the permissible rating income will be ongoing.

You can register for upcoming Community Conversations where there will be an opportunity to ask questions.

Community Conversations will be held in Tweed Heads on Monday 15 May and in Murwillumbah on Tuesday 16 May. 

Register to receive more details via the link on the Your Say Tweed page.

This is the first time in 10 years that Tweed Shire Council is seeking an SRV.

Council does not presently foresee a shortfall in its long-term financial plan, provided the additional $1.6M can be raised. 

However, like all businesses, unexpected costs may arise which Council would need to consider as part of its planning for the 2024/25 budget. 

It is our hope that rising inflation will slow down over the coming financial year as the after effects of the COVID-19 pandemic and the war in Ukraine wash through the global economy.

Residents across the Tweed have started to receive their Notice of Valuation from the NSW Valuer General in recent weeks. This is provided every 3 years and reflects the unimproved value of land of a property.

The latest valuations apply from 1 July 2022 and reflect a significant rise in property prices in the Tweed following the COVID-19 pandemic – with valuations rising on average of 72% across the Shire. 

It’s important to note an increase in land value does not necessarily mean an increase in rates. Council does not receive any more money because land values increase – some people may pay more or less on their rates depending on the change in value of their land relative to changes in land values across the Tweed.

Watch the video at tweed.nsw.gov.au/land-valuations to find out more about the rates process and how Council plans ahead so the Tweed is ready for the future.

Residential - increase of 75.3%

Business - increase of 57%

Farmland - increase of 80%

Council has received new land valuations from the Valuer General effective 1 July 2023. 

The results have seen a significant increase in land values across the Shire.

An increase in land valuations does not result in any additional general income for councils. 

The total income that Council can source from land rates is capped at the approved rate pegged amount of 4%, which is well below the rate of inflation. Council is seeking a Special Rate Variation of 2.35%, which should this be approved, means a 6.35% rate rise.

It simply means it changes the way rates are distributed across the Shire. Some people will pay more rates, some less, some the same.

An increase in your land valuation does not necessarily mean your rates will increase. The difference is how the rates revenue is shared across ratepayers, based on the change in their property value. Some people may pay more or less on their rates depending on the change in value of their land relative to changes in land values across the Tweed.

Generally, properties whose land valuation increase is lower than the average increase for that rates category (residential, business or farmland) will see a reduction in rates. However, properties whose valuation increase is higher than the average for the rating category may see a rise in rates.

For example:

•  A property at Pacific Drive, Banora Point. Their land value increased by 50% yet their land rates will decrease, even with a 6.35% SRV rate.
  
  
• Another example is a property at Dorset Street, Murwillumbah. In this case, the land value increased by 83% but their rates will remain unchanged at the minimal rate level of $1143.80, only increasing by $23 for the year should the SRV be approved.
  
  
• The biggest change will be felt on the Tweed Coast where property prices have increased significantly. For example, a property on She-Oak Lane, Casuarina, where the land value increased by 128%. This property will see its rates rise by 39% to $4,219 (rate peg) or $4,325 (SRV) per annum. 

Enquiries or objections to 2022 land valuations need to be lodged directly with the Valuer General of NSW’s Office. See details on your Notice of Valuation.

Some of the services that may be affected include the potential to close Kingscliff Library, reduce road and park maintenance levels including pothole repair, reduce opening hours at Council’s three aquatic centres, reduce the scale of Council’s new animal pound – among other service reductions.

Services that are likely to be affected are listed here.

In determining the list of Council services, the focus was on services which Council is not required to provide and funded from Council’s General Fund. Excluded from this were water, wastewater and resource recovery services, Tweed Holiday Parks and statutory services or asset renewal programs.

No, this is a final list which has been agreed to by Council and the executive leadership team following consultation within the organisation.

The services of Water, Wastewater, Waste or Tweed Holiday Parks as these are not funded from general income.

Asset renewal programs are excluded as a deferral would result in increased longer-term costs.  

Pension concessions are determined by the State Government. Unfortunately, the amount of rate assistance provided by the state government for individual pensioners has remained at the same level for many years and we are not aware of any plans by the State to increase these concessions.

The amount of rate assistance provided by the state government for individual pensioners has remained at the same level for many years and we are not aware of any plans by the state to increase these concessions.