Glen Innes Severn Council has formally lodged an application with the Independent Pricing and Regulatory Tribunal seeking approval for a Special Rate Variation that would see general rates increase by 48.3 per cent over three years.
Council says the proposal reflects growing financial pressure facing regional councils across New South Wales, driven by rising costs, ageing infrastructure and a funding system that has failed to keep pace with service expectations. The application forms part of Council’s long-term strategy to restore financial sustainability, stabilise service delivery and responsibly manage and renew local infrastructure. Council modelling shows that without additional revenue, service levels, asset maintenance and community facilities would continue to decline.
Glen Innes Severn is one of the last councils in the New England region to seek a major uplift in rates, following years of cost shifting from other levels of government and increasing demands for council services. Several neighbouring councils have already moved ahead with Special Rate Variations to address similar pressures.
Gunnedah Shire Council received approval for a cumulative SRV of 37.67 per cent over two years, with increases spread across rating categories to maintain core infrastructure and services. Tamworth increased their rates by a similar amount – 36.3 per cent over two years, with the additional investment focused on roads.
At the higher end of the increases, Walcha Council’s cummulative rate rise over three years was 57.74 per cent to avoid further service decline and maintain essential services was one of the most supported by the local community. Armidale Regional Council had a 58.8 per cent SRV approved in 2023, and one of the lowest levels of support from the community.
Tenterfield Shire Council is the only application that met resistance from the independent decision maker. They initially sought a dramatic cumulative increase of 104.49 per cent over two years to address long-term infrastructure and service shortfalls, but the tribunal only approved a one-off 43 per cent permanent increase for 2023-24 after assessing the application and community feedback.
Uralla Shire Council is also exploring a proposal involving around a 58 per cent rise over two years if adopted.
Councillors endorsed the Glen Innes Severn application following consultation conducted through the Shaping Tomorrow community engagement program. Feedback highlighted an ongoing tension shared across regional NSW, with residents wanting rates to remain affordable while also expecting safe roads, reliable water, community facilities and essential services to be maintained to an acceptable standard.
Mayor Margot Davis said the decision to apply for a Special Rate Variation reflected a constrained choice rather than a preferred one.
“Our community has been very clear, no one wants higher rates. Council doesn’t want them either. But we are being forced to make decisions in a system where costs are rising and funding from other levels of government has not kept pace,” Mayor Davis said.
“This SRV is not about expansion or extravagance. It is about protecting core services, maintaining essential infrastructure, and keeping this council financially viable into the future.”
Mayor Davis said Council had consistently advocated for broader reform to reduce the need for councils to rely on rate increases, calling for Financial Assistance Grants to be restored to at least one per cent of Commonwealth taxation revenue.
General Manager Bernard Smith said the financial pressures facing Glen Innes Severn Council were not unique, with councils across the state confronting the same structural funding gap.
“This is not a Glen Innes Severn-specific problem. Councils across NSW are confronting the same structural funding gap witnessed by the large number of councils who have been forced to apply for an SRV in order to be financially sustainable. Costs are rising faster than rate-pegging allows, assets are ageing, and responsibilities as well as expectations continue to grow,” Mr Smith said.
“Submitting an SRV is an unfortunate necessity resulting from the current system, but it is also a responsible step to ensure this community remains well-serviced, resilient, and sustainable over the long term.”
With the application now lodged, the Independent Pricing and Regulatory Tribunal will undertake an independent assessment of Council’s financial position, the justification for the proposed increase and the community engagement undertaken. The process includes public exhibition of the application and an opportunity for residents to make submissions directly to IPART.
A determination is expected in May or June ahead of the 2026–27 financial year, with Council indicating it will continue to keep the community informed as the assessment progresses.
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