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16 May 2025

The Independent Pricing and Regulatory Tribunal’s decision to reject North Sydney Council’s planned 87% rate rise has been welcomed by local member Felicity Wilson as a vindication of community opposition to the plan.

Wilson, the Liberal member for North Shore, said the outcome reflected widespread concern about the Council’s fiscal management and lack of engagement with residents.

“This decision is a win for people power and a clear verdict on the overreach of North Sydney Council, who ignored the voices and the needs of our community, while arrogantly pursuing a shopping list of new pet projects at the expense of those who could least afford it.”

“In a cost-of-living crisis, North Sydney Council ignored the pleas of residents and small businesses already stretched to the limit. IPART’s decision validates locals’ objections and concerns with Council’s bungled process.”

“North Sydney Council will now need to go back to the drawing board and start a new financial plan from scratch – one that listens to and represents the needs of the community.”

“It’s clear that the financial plans of Council are not sustainable – and staunching the bleeding from the ongoing North Sydney Olympic Pool debacle should now be the number one focus for councillors.”

Ms Wilson thanked the residents who shared their personal stories with her to ensure the independent regulator could reflect community concerns.

“When North Sydney Council pushed through consultation over Christmas and the school holidays, panicked residents contacted me in droves feeling disenfranchised and fearful of the impacts to their lives.”

“When Council ignored the pleas in their own consultation process and the impassioned speeches on the floor of Council, locals told me that they had lost all hope.”

“By sharing thousands of personal stories with me, I was able to ensure their voices were heard by IPART – and together we achieved what many thought was impossible.”

The special variation sought to permanently lift average residential rates by 87%, and business rates by 77%, over four years. A parallel bid to increase minimum rates by $833 for residential and $1,091 for business ratepayers was also rejected. Several residents and community groups had argued that just 10% of the additional revenue would have gone to the controversial North Sydney Olympic Pool redevelopment—undermining Council’s argument that the increase was required for essential infrastructure.

North Sydney Council mayor Zoe Baker has told the Sydney Morning Herald that she was disappointed by the decision and that alternate plans such as asset sales would now be pursued.

Councillors who had dissented from the rate rise proposal praised the decision.

Cr James Spenceley told the Sun: “IPART’s refusal is a victory for commonsense and especially a victory for the people of North Sydney who never bought into the lacking justification and lacking consultation and came out in force resoundingly opposing this nonsensical plan. The fact North Sydney was the only council not to receive even a partial rate-rise shows exactly how bad this plan was.”

“Sadly the community was never listened to, valid alternate options were never considered and therefore nothing about the rate-rise passed the requirements of a financially sophisticated analysis let alone the pub test. A self inflicted expensive complete debacle, one that the Mayor, dominate councillors and CEO should feel incredible embarrassed about. There should be a large number of people in Miller Street reflecting on this today. Perhaps now we can set about putting a financial responsible budget in place for our long term future.”

Cr Jessica Keen said: “This decision reflects what many of us already knew: the proposal lacked fairness, transparency, and genuine community input. Your voices—through submissions, conversations, and shared concerns—made a real impact. IPART found that Council did not provide a strong enough financial case, failed to clearly explain the proposed changes to residents, and overlooked the strain this would have placed on households and small businesses.”

MP for Willoughby, Tim James, also weighed in on the decision today.

“An 87% rate increase was nothing but overreach that Council should never have proposed,” James said. “IPART was damning of Council, saying the size of the proposed increase was not reasonable. Council also failed to demonstrate the financial need was justified.”

“IPART has confirmed this was never about the North Sydney pool project. It found this was in effect a cash grab intent on generating large surpluses to inflate Council’s cash reserves. During a cost-of-living crisis this was a contemptible and out of touch impost on hardworking residents and small businesses already struggling to make ends meet.”

“The community spoke up – and we were heard. I received countless messages from locals concerned about the impact, and I thank everyone who took the time to raise their voice.”

“Council may have snubbed the people of North Sydney but the process has worked and this win is our community’s.”

“IPART further found Council failed to adequately consider alternatives to such a large rate increase, with token savings measures representing only 0.4% of expenses. Concerningly, Council also gave little thought to the impact on small businesses.”

“This is a Council that clearly needs to get their house in order. IPART has told Council to return to return to the drawing board, properly engage with ratepayers and explore cost saving and productivity improvements. Financial management is more than just treating ratepayers as a cash cow.”

“I call on North Sydney Council to start listening to the community it represents.”