16 May 2025
North Sydney Council said it will be forced to dramatically rethink its long-term financial strategy after the Independent Pricing and Regulatory Tribunal rejected its application for a cumulative 87% rate rise over two years.
The Council had proposed increasing rates by 45% in 2025–26 and a further 29% in 2026–27, arguing that the additional revenue was essential to restore liquidity, maintain services, address an infrastructure renewal backlog and support strategic priorities for a growing population.
But IPART declined the application in full, citing concerns about financial sustainability, the adequacy of Council’s community engagement, and the proposed use of funds.
Council acknowledged the decision and said it would now consider “alternative strategies to repair the financial position.” In a statement, it warned that the rejection of the SRV meant key infrastructure upgrades—including for North Sydney Oval, Stanton Library and local sporting fields—were now unfunded. Service levels would also be reviewed and reduced.
The Council flagged that it would prioritise compliance and safety in infrastructure management while deferring other capital projects. A review of all services and programs is now underway, with a focus on cost-cutting and operational efficiencies.
The timing of the SRV application was framed by Council as “critical,” with liquidity constraints leaving it unable to renew ageing assets or fund new works. IPART’s ruling will force a reset of its budget planning and may see delays to the implementation of longer-term community strategies.
The Council thanked residents for their engagement over the past year and said it would provide further updates as revised plans are developed.
Mayor Zoe Baker said: “This Council is determined not to “kick the can down the road” for a future generation to deal with.
The first-year increase requested in the special variation aimed to improve Council’s liquidity position due to the North Sydney Olympic Pool project, ensure continued service delivery and supported broader infrastructure renewal.
As a councillor who fought tirelessly to stop the increased scale and rushed decision- making of the North Sydney Olympic Pool project, it pains me that the liquidity crisis caused by this project will continue to have impacts on Council’s service delivery and capacity to maintain and renew infrastructure for the foreseeable future.
In addition to the pool project, the application sought to address an historical dependence on declining revenue and inadequate investment in renewal funding for infrastructure.”
She added: “Without responsible financial management and provision of adequate funding, the burden shifts to the next generation or the one after that.
IPART’s decisions highlight the urgent need for the State Government to adopt the recommendations of the recent Upper House Inquiry into the Ability of Local Government to Fund Infrastructure and Services and implement a separate process for structural financial repair.
North Sydney Council’s financial position is very well known and has been widely reported in the media over many years. If a council like North Sydney, subject to significant public scrutiny in media across the State, is unable to effect financial repair through applications to IPART, the system is clearly flawed.
If the current SRV process is not able to fix a long-standing structural financial problem and plan for the future, we risk embedding ad hoc financial decision-making, moving from project to project and crisis to crisis. This approach does not offer certainty for financial sustainability nor for our community.
Council will be asking the State Government for a clear alternative pathway for structural financial repair.
Unfortunately, this decision means Council will have to make really tough choices and decisions. Service cuts, asset sales and other measures will have to be on the table – none of which support intergenerational equity.”