The rate peg is determined by the Independent Pricing and Regulatory Tribunal (IPART) each year.

IPART chair, Dr Peter Boxall, said next year’s rate peg is higher than it has been in recent years (2.3 per cent in 2018-19 and 1.5 per cent in 2017-18), due to increases in labour and energy costs and higher construction costs for roads, drains, footpaths, kerbing and bridges.

But Local Government NSW president Linda Scott said the decision left no scope for councils to address infrastructure maintenance backlogs, or to build a more sustainable financial future.

“It is absolutely critical that councils be able to meet the rise in the costs of labour, energy and the construction of roads, drains, footpaths, kerbing and bridges, and IPART’s announcement does that,” Cr Scott said.

“That’s the good news; the bad news is that the rate cap as a savings measure for ratepayers is largely illusionary,” Cr Scott said.

Councils wanting to increase their revenue by more than the rate peg need to consult with their communities and then must notify IPART by 30 November.

There has been talk of a special rate variation for Bega Valley to increase funds available for tourism support and promotion. 

It is believed that discussions have centred around getting those who currently benefit from tourism, such as some accommodation providers, but do not pay the business levy, to do so.

It would not apply to all ratepayers.