Special Rate Variation FAQs

Rate pegging is a limit set each year by the Independent Pricing and Regulatory Tribunal (IPART) that determines how much a council can increase its total general rate income.

For 2025/26, IPART has set Ballina Shire Council’s rate peg at 3.8%. This means the total income Council can collect from general rates can only increase by 3.8% compared to the previous year, even if costs rise more than that.

It’s important to understand that rate pegging caps the overall amount of income, not individual rates. Your individual rate may go up or down depending on your land value, but Council’s total rate revenue must stay within the capped increase.

In recent years, cost increases have outpaced the rate peg, making it harder for councils across NSW to maintain and renew infrastructure, respond to community expectations, and deliver essential services.

This is why Ballina Shire Council is proposing a Special Rate Variation (SRV) to seek approval from IPART to raise general rate income above the pegged amount commencing from the 2026/27 year, helping to fund key local services and infrastructure into the future.

No. Community engagement on the SRV will continue.

This initial consultation gives the community an opportunity to learn about the proposed Special Rate Variation (SRV) and provide early feedback.

Following this initial engagement period, Council will consider the feedback at the 26 June 2025 Council meeting.

If Council proposes to continue consulting on the SRV, a second phase of community engagement will be implemented, providing further opportunities for the community to make a submission, before Council makes a final decision to submit, or not submit, a formal application to IPART to obtain approval for the SRV.

Council's rate revenue is at least 11% below the average of comparable councils. This SRV would help address the funding shortfall for renewing essential infrastructure and maintaining services.

The SRV is proposed to be implemented over four years, from 2026/27 to 2029/30.  

On average, by 2029/30 ratepayers will pay approximately:

• Residential $166 more per year, or $3.19 per week.
• Business $538 more per year or $10.35 per week.
• Farmland $260 more per year or $5 per week.

Note the above figures relate to the SRV component only. Individual rates will vary depending on land value determined by the NSW Valuer General.

 

The additional revenue would fund infrastructure renewal for roads, stormwater, open spaces, sports fields and community buildings as well as improving our waterways, enhancing our biodiversity and implementing community safety programs.

Yes. The total increase proposed is around 6% annually from 2026/27 to 2029/30 - this includes the rate peg (estimated 3.25%) and the SRV component (2.75%).

Council is proposing a 6% increase each year from 2026/27 to 2029/30. This includes the usual rate peg (estimated at 3.25%) and an additional 2.75% through a proposed Special Rate Variation (SRV).

The increase is cumulative, which means each year’s rise is based on the total from the previous year, not just the original amount.

Over four years, this would result in a total estimated increase of around 26.25%. Without the SRV, the estimated total increase would be about 13.65% over the same period.

Ballina Shire Council's average rates are around 11% lower than those of similar-sized councils based on Office of Local government benchmarks and comparisons to other councils in the Northern Rivers.

Yes, it does. The proposed Special Rate Variation (SRV) would apply to all rating categories, including Residential, Business, and Farmland properties.

For detailed estimates of how this would affect different ratepayers, refer to page 11-12 of the Draft Delivery Program and Operational Plan.

Ballina Shire Council employs approximately 378 equivalent full-time (EFT) staff to serve a population of around 47,279 residents, resulting in a staff-to-resident ratio of roughly 1:125. This ratio is lower than that of many comparable councils in NSW, indicating a lean staffing structure. Despite this, Council continues to deliver a wide range of services and infrastructure projects efficiently.

Yes. Over time, local governments across Australia, including Ballina Shire Council, have been required to step in and manage responsibilities that were once funded or delivered by state and federal governments.

Examples include:

• Disaster recovery and resilience planning including managing flood recovery works.

• Environmental protection and biodiversity management native vegetation protection, and coastal management.

• Social infrastructure and community support including advocacy and support for housing affordability, youth services, ageing populations, and community safety initiatives.

• Public health and compliance such as implementing public health orders, managing companion animal regulations, and enforcing compliance for environmental protection.

These responsibilities are essential to community wellbeing but are often passed to councils without adequate or ongoing funding, placing pressure on rates revenue and local resources.

Yes. Ballina Shire Council has various commercial activities to diversify its income such as commercial property development. Revenue from these activities supports the delivery of community services and infrastructure projects.

Ballina Shire Council's income is derived from several sources, each allocated to specific services and infrastructure.

• Rates and Annual Charges approximately 40%of total income.
  • Rates fund general services such as roads, footpaths, parks, playgrounds, libraries, community facilities (i.e. swimming pools, indoor sports centre), and environmental protection.
  • Annual Charges specifically allocated to essential services like water supply, wastewater treatment, and rubbish collection and disposal.
• User Charges and Fees about 20%, generated from services like development applications, use of community facilities etc. These are covered in our Fees and Charges document.
• Grants and Contributions roughly 30%, for both operational and capital project funding from state and federal governments.
• Other Income the remaining 10% is sourced from investments, property portfolio, airport operations, and other commercial activities.

While rates are a crucial component of Council's revenue, they represent just a portion of the overall funding required to maintain and enhance community services and infrastructure. The proposed Special Rate Variation aims to address funding shortfalls and ensure the continued delivery of essential services.