23°C | Sunday February 1, 2026 
17 November 2024
North Sydney Council is pushing for a dramatic rate increase next financial year, with minimum residential rates set to rise by 81% and overall residential rates increasing by 45% to 70%. Minimum business rates would climb even higher, with an 84% increase proposed.
Currently, 77% of residential ratepayers pay the minimum rate of $715. Under the proposal, outlined in a report for councillors to consider next Monday, these minimum Ordinary Residential Rates would rise to $1,300 in 2025/26. Minimum Ordinary Business Rates would increase from $715 to $1,400 over the same period.
Furthermore, ratepayers paying above the minimum would also face increases. Council is proposing four options, which would involve a choice of a 50%, 60% and 75% increase next year, and a 65%, 75%, 87,5% and 111% rise over three years.
Under these options, average residential rates are projected to jump from $1,040 in 2024/25 to between $1,511 and $1,762 in 2025/26—an increase of approximately 45% to 70%. Average business rates would surge from $6,724 to between $10,601 and $12,367, reflecting increases of around 58% to 84%.
“Council’s financial position is very weak, and the financial outlook is unsustainable, requiring significant structural reform,” the report states. “Existing revenue is insufficient to cover current service levels, loan repayments, asset maintenance backlogs, infrastructure renewals, upgrades, and the development of new assets to meet the demands of a growing and evolving population.”
The report attributes the financial challenges to the COVID-19 pandemic, which reduced revenue streams by over $9.9 million (adjusted for inflation) compared to pre-pandemic levels. Further compounding the problem is the North Sydney Olympic Pool redevelopment, a project now two years overdue. Decisions to proceed without complete designs and adopt a high-risk contract strategy resulted in cost overruns, increased debt, and weakened liquidity, the report claims.
To fund the pool project, the Council borrowed $34.19 million from internal reserves and $51 million in external loans. The ongoing operational deficit is projected at $4.7 million in Year 1, reducing to $2.8 million by Year 3.
The Council argues that future population growth, driven by 3,000 new apartment developments over the next decade, could generate an additional $5.9 million annually under the revised rate structure, compared to $2.8 million under the current rates. The report underscores the necessity of higher minimum rates to meet growing infrastructure and service demands.
Approval for the rate increases must be sought from the NSW Independent Pricing and Regulatory Tribunal (IPART). Despite long-standing awareness of the financial pressures, the Council is requesting an extension from IPART to delay the application deadline from 3 February 2025 to 3 March 2025.
This extension would allow for community consultation between 27 November 2024 and 10 January 2025, with councillors set to decide on 10 February 2025 whether to proceed with the application. If approved, IPART would evaluate the proposal and invite public submissions between March and June 2025, with a final determination expected by June.
Grahame Lynch