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The Independent Pricing and Regulatory Tribunal of NSW (IPART) is responsible for
setting the amount by which councils can increase their general income, which
mainly includes rates income.
Each year, we determine a standard increase that applies to all NSW councils, based on our assessment of the annual change in their costs and other factors. This increase is known as the rate peg.However, councils can apply to us for a special variation that allows them to increase
their general income by more than the rate peg. We are required to assess these
applications against criteria in the Guidelines provided by the Division of Local
Government (DLG), and may allow special variations under either section 508A or
508(2) of the Local Government Act 1993 (the Act).1
In 2012/13, Gilgandra Shire Council (Gilgandra Council) applied for a multi-year
special variation under section 508A. It requested a cumulative increase of 53.2%
over the 7-year period from 2012/13 to 2018/19. After assessing the council’s
application we decided not to approve the requested special variation. Instead, we
have approved a single-year increase of 6.8% in 2012/13. We made this decision
under section 508(2) of the Act.