Shoalhaven Council rate increase of 12 per cent approved

The Independent Pricing and Regulatory Tribunal (IPART) has approved Shoalhaven City Council’s request for a Special Rate Variation (SRV) of 12 per cent from 1 July 2025.

The rate increase of 12 per cent, including the 3.8 per cent rate peg, will see an average increase in rates of around $3.46 a week (thats $180 increase over 12 months).

Acting CEO James Ruprai said the 12 percent rise would go some of the way towards helping Council to prioritise the backlog of maintenance required for critical assets across the city, while also recognising the financial pressures being felt by many in the community.

“At a time when every dollar counts we believe this increase strikes the right balance and will allow Council to get vital work done in the community,” Mr Ruprai said.

“A lot of good work has already been carried out by Council staff to find ways to reduce costs and increase revenue internally. This will continue as we progress towards our goal of $10 million in savings over the next four years,” he said.

“Our condition assessment of local roads and community buildings to understand the true cost of renewal is almost complete and this will inform the amount of funding needed to repair and renew these assets.”

Shoalhaven City Council was one of six NSW councils to apply to IPART for a special variation to increase our general income from rates above the rate peg.

IPART carried out a four week consultation period between February and March 2025 and received 46 submissions and 390 survey responses for Shoalhaven City Council. The Tribunal assessed the applications in accordance with the Office of Local Government’s criteria and based on compliance with the required criteria, the Tribunal approved the application.

Background  

Council staff recommended the Council endorse an SRV following an independent review of the organisation’s finances in November 2023 which identified an annual shortfall in the general fund of up to $35 million dollars.

In December 2024 Councillors resolved to seek a rate increase of 12 per cent and Council submitted its application to IPART in early 2025.

The decision followed a period of community consultation where residents were invited to provide feedback on the proposed SRV options of 8 or 12 per cent. More than two thousand residents provided feedback.

Since Feb 2024, Council has embarked on a range of initiatives to reduce costs and increase revenue.  The organisation has made over $2.5 million so far in ongoing savings through a range of budget reduction and revenue generation measures.  The organisation has also implemented other workforce initiatives such as cuts to overtime and reduced recruitment, which has resulted in one-off savings to date of over $4 million.

In December 2024, Council endorsed the Sustainable Financial Futures Plan, which outlines the organisations commitment to deliver more savings to further improve Council’s financial position by $10 million over the next four years.

Published: 16 May 2025