FAQs
What’s a Rate Peg?
The rate peg is the maximum percentage amount by which a council may increase its general income for the year. It’s set by the Independent Pricing and Regulatory Tribunal (IPART).
How does a Business know if they are "Business General" or "Business Industrial"?
The two maps (see 'Documents' tab on the project page) indicate the 186 assessments that will fall under the new proposed sub-categories “Business Industrial - Leeton” and “Business Industrial - Whitton”.
The sub-categories are based on centres of activity in industrial precincts.
When introducing new sub-categories, Council may only add centres of activity that are ‘congruent’ and ‘homogenous’, not stand-alone sites.
Why is "Business - Industrial" paying a greater % than "Business - General"?
Council deems that businesses in industrial centres of activity generally use a bigger share of the more costly Council services compared to smaller retailers and commercial offices.
An example is the greater impact of businesses in industrial estates on local roads from heavy vehicles supplying them materials or transporting their finished goods to market.
Note that from Year 4, the 75/25 % split will be lifted and all categories will have the same rate peg applied.
Why is the Current Rating Structure not Equitable?
Today, the average Leeton business rate is $1,401 as opposed to $2,438 which is the average for comparable NSW councils. The average Leeton farmland rate is $3,855 as opposed to $3,743 which is the average for comparable NSW councils.
At the end of the proposed three-year program, the average business rate will be $2,196 which is closer to $2,651, the estimated average for similar sized NSW councils.
The average Leeton farmland rate will remain $3,855 compared to $4,070, the estimated average for similar sized NSW councils.