15-16 – Reporting of Rates Permissible Income for 2015/16
What’s new or changing
- On 2 December 2014, the Independent Regulatory and Pricing Tribunal announced the 2015/16 rate-peg limit of 2.4%.
- The Special Schedule 9 Permissible Income Workpapers have been updated accordingly. The rate-peg for 2015/16 will be used to calculate the Permissible Income that will be reported and audited with the Financial Statements for 2014/15.
What this will mean for your council
- The updated Workpapers are now available for councils to use in planning the rating structure for 2015/16.
- The reasonable cost calculation of Domestic Waste charges will continue to be audited and reported directly to council.
- General Managers will need to sign the Statement of Compliance prior to the Workpapers being given to the Auditor. The Workpapers will be provided to the Auditor as part of the Financial Statements audit.
- The deadline for lodgement of the audited Financial Statements is 31 October 2015.
- The 2015/16 Workpapers are available on the Office’s website.
- When councils have an ‘excess result’ (where a council’s rates income exceeds the permissible amount) the ‘excess result’ must be approved by the Minister (under s512, Local Government Act) on the condition that councils will make an appropriate adjustment to the permissible income in the following year. Excess results will be identified by the Office through the Financial Statements and the Financial Data Return. Where excess results occur, the Office will seek the Minister’s approval and will arrange publishing in the NSW Government Gazette. This process will automatically occur after councils report an excess to the Office in the Financial Data Return.
Where to go for further information
- The updated Workpapers are available on the OLG website: https://www.olg.nsw.gov.au/strengthening-local-government/supporting-and-advising-councils/directory-of-policy-advice/rating-and-special-variations.
- The “Local Government Code of Accounting Practice and Financial Reporting – Update 23”. Councils will be advised by circular when the code is available.