NSW council rate-income pegs set between 3.7% and 6.6% for 2027–28

NSW councils will be allowed to increase their total general rates income by differing amounts in 2027–28, with final rate pegs ranging from 3.7 per cent to 6.6 per cent.

The Independent Pricing and Regulatory Tribunal published the figures for all 128 councils on 13 October 2026. Core rate pegs range from 3.7 per cent to 5.4 per cent, with some growing areas receiving an additional population factor.

IPART stressed that a rate peg is not an automatic increase to every property owner’s bill. It limits the percentage by which a council can increase its total general income from rates, before any approved special variation.

Councils will decide whether to use the full allowance, how increases are divided between residential, business and other rating categories, and what hardship assistance is available.

Growth areas receive larger allowances

The highest final peg is 6.6 per cent for Coolamon, combining a 4.4 per cent core peg with a 2.2 per cent population factor. Wollondilly has a 5.7 per cent final peg, including a 2 per cent population factor.

Other relatively high figures include 5.5 per cent for Carrathool, Hay and Strathfield; 5.4 per cent for Central Darling; and 5.3 per cent for Dungog, Murray River and The Hills.

Among larger metropolitan councils, Canterbury-Bankstown has a final peg of 5 per cent, Liverpool 5.2 per cent, Blacktown 4.8 per cent and Parramatta 4.7 per cent. The City of Sydney’s peg is 4.1 per cent.

Regional and coastal examples include 4.3 per cent for Ballina and the Central Coast, 4 per cent for Coffs Harbour, 3.9 per cent for Lismore and Shoalhaven, and 4.2 per cent for Port Macquarie-Hastings.

Population adjustments are intended to let councils collect more total revenue when their communities grow and demand for roads, parks, waste services and other local infrastructure increases. IPART does not reduce the allowance when a population falls, because councils may still need to maintain the same infrastructure network.

Why your bill may move differently

The percentage change on an individual rates notice can be higher or lower than the council-wide peg. The outcome depends on the council’s rating structure, minimum rates, land valuations and how the revenue target is shared across different properties.

A land valuation does not simply determine the total amount of money a council raises. Instead, it helps distribute the rates burden among properties within the relevant category. If one property’s value changes differently from others in the council area, its bill may also move differently.

The peg applies to general rates income rather than every charge appearing on a rates notice. Waste, water, stormwater and other separate charges may operate under different rules.

IPART said general income accounts for about one-third of council income on average. Councils also receive money from grants, fees, developer contributions and other charges.

Cybersecurity costs included

The 2027–28 core pegs include a cybersecurity adjustment ranging from 0.4 to 1.2 percentage points. IPART estimates this component represents about $6 to $8 a year for an average residential ratepayer.

The regulator said councils remain accountable for how rates income is used to strengthen cybersecurity capability.

Property owners will not know their final 2027–28 bill until their council adopts its budget and rates structure. Investors should also remember that council rates are an ownership cost, although any decision about rent must comply with tenancy law and market conditions rather than simply matching a rates increase.

Ratepayers experiencing difficulty should contact their council early about concessions, payment arrangements or hardship support.

What it means for you

• The published peg limits total council rates income; it is not your household’s guaranteed increase.
• Owners should check council budget documents before estimating their 2027–28 holding costs.
• Bills can vary because of rating categories, minimum rates, charges and movements in land values.
• Growing councils generally received larger population adjustments to help fund services for new residents.