Residents of one area in a major urban centre might want to brace themselves for a significant financial jolt just two months into 2025.
The North Sydney Council has made a contentious decision that could see local rates soar by more than 87% over the next two years. This move, which has sparked a wave of concern and opposition among the community, is not yet set in stone but is certainly causing a stir.
The decision came to light after a heated council meeting that took place late on Monday night. The gallery was packed with residents, many of whom voiced their strong disapproval. The atmosphere was charged with emotion as the special rate variation (SRV) was passed, amidst boos and jeers from the crowd. Independent Mayor Zoë Baker struggled to maintain order as some attendees called for the councillors in favour of the hike to stand down.
But before this rate rise can take effect, the council must seek approval from the Independent Pricing and Regulatory Tribunal. This is a standard procedure for any council wishing to increase its rate of income beyond the maximum set by the pricing regulator.
The lead-up to the meeting saw locals rallying outside the council building, brandishing signs with messages such as ‘Stop the rate rise’ and ‘The residents say no to the rate rise’. During the meeting, nearly 40 people took the opportunity to speak, with the majority expressing opposition to the proposed increase.
Residents like Julie Townsend highlighted the ‘tip of the iceberg’ anger that’s brewing as people grapple with the current cost-of-living pressures, including rising interest rates and inflation. Martin Dudley, a 25-year local, pointed to a recent survey showing scant community support for the rate hike and called for further analysis.
The council had previously sought community feedback on four options to increase rates to address its financial position. However, only 5% of respondents supported an 87.05% increase over two years. This begs the question: How can the council justify such a steep increase in the face of overwhelming community opposition?
Some residents suggested alternative solutions, such as selling off assets to boost revenue or implementing more modest rate increases over a longer period. Others criticised the consultation process itself, which took place during a holiday period when many were away, arguing that it was too short and poorly timed.
Despite the overwhelming opposition, a few voices did speak in favour of the rate rise. John Hancock, representing what he called ‘the silent majority’, and self-funded retiree Jennifer Sumpton, both supported the increase, citing the unsustainable nature of the current rates and the potential loss of services.
One of the major financial challenges facing the council is the cost blowout of redeveloping the heritage-listed North Sydney Olympic Pool, now estimated at around $90 million. The impacts of the COVID-19 pandemic and the rising cost of service delivery, coupled with declining revenue from other sources, have also been cited as reasons for the rate hike.
Mayor Zoë Baker referred to the rate increase as a ‘harsh reality’ stemming from the previous council’s ‘bloated vanity project’ to redevelop the pool. She emphasised the need for difficult decisions to be made for the greater good and financial repair.
Councillor James Spenceley opposed the rate hike, calling it ‘outrageous’ and expressing concern over the additional financial burden it would place on ratepayers. Conversely, Deputy Mayor Godfrey Santer argued that the increase was reasonable when compared to rates in neighbouring councils. ‘Although the proposed rate increases are significant, they are based on a very low starting point—$800 annually or $70 monthly,’ said Cr Santer.
If approved, the special rate variation would permanently increase total ordinary rates in the North Sydney Local Government Area over two years, after which the rates would remain at the new level indefinitely. The proposal includes a 45% rate increase for the 2025-26 financial year, followed by a 29% increase in the subsequent year. This would result in minimum residential rates more than doubling from $715 a year to $1,548 by mid-2026, and minimum business rates jumping from $715 to $1,806 during the same period.
How do you feel about the proposed rate hike? Have you experienced similar increases in your local area? Please share your opinions and experiences in the comments below. Let’s engage in a discussion to better understand the implications of this rate hike and how we can support each other through these challenging times.
Also read: Mayor defends sky-high salaries amidst 40% rate hike for residents
I wonder what is going to happen to the Council’s Rate Default Rate will become, as not all Rate Payers will be able to absorb that amount of an Increase. ????
From your report, this council has had unusually low rates for a long time. When you look at other areas have unusually high rates. All types of government, local or federal, need to look at themselves and wonder why they are wasting public funds as they see fit. There is so much wasted that a family would not be able to sustain.
We pay water rates & land rates. Our land rates are twice a year & are almost $3000 twice a year.