Cumberland City Council is moving ahead with a proposal to harmonise its rates structure, starting 1 July 2021.
Following the merger process in 2016, Cumberland City Council is required to harmonise its rates, moving from three different rates structures (Holroyd, Auburn and Parramatta Council) to one.
Council’s General Manager, Hamish McNulty, said that a single rates structure means a redistribution of the total rates income so that all ratepayers have their rates calculated in the same way. It does not however involve an increase in total rates revenue.
“Rates help to pay for essential infrastructure and services. This includes footpaths, resealing roads, and stormwater drainage as well as community facilities like parks, gardens, libraries and pools,” Mr McNulty said.
“This process will deliver much-needed reform to our rates structure and ensure an equitable distribution of rates, where in the past some residents and businesses have been paying higher rates and have been carrying a greater financial burden.
“I want to thank ratepayers and businesses who took the time to provide their feedback to Council on preferred options to develop one system. We have developed a plan and will take this to the State Government for their consideration and endorsement.”
Subject to the passing of the required legislation in the first half of 2021, Council will be harmonising its rates over a four-year period to reduce the impact on those ratepayers who will have to pay more. If the proposed legislation is not supported by the NSW Government, Council will be required to introduce these changes in one year and this will mean a greater impact to some ratepayers.
Council will also lodge an application with the Minister for Local Government to harmonise minimum rates. If approved, these new rates will take effect from 1 July 2021. Subject to Government approval, the residential minimum amount will start at $650 and increase by 10% for four years. The business rate minimum amount will start at $1,200 and increase annually by the rate peg, as determined by IPART.
Council conducted community consultation between 20 March 2020 and 30 September 2020, and asked ratepayers about their preferred option and the impacts associated with each option.
A total of 550 written submissions were received, with 65% supporting Option 1, being no Special Rate Variation increase and a transition over 5 years to a single rates structure across the Local Government area, commencing from 1 July 2021.
Council also held a community survey, which showed 63% of residents and businesses support the same option.