24-05 Information about rating 2024-25

What’s new or changing

• Maximum boarding house tariffs for 2024-25 have been determined.
• Maximum interest rate payable on overdue rates and charges for 2024-25 has been determined.
• Section 603 Certificate fee for 2024-25 has been determined.
• Statutory limit on the maximum amount of minimum rates for 2024-25 has been determined

What this will mean for your council

• Councils should incorporate these determinations into their 2024-25 rating structures, Operational Plan and Revenue Policy.

Key points

Boarding House Tariffs

• In accordance with section 516 of the Local Government Act 1993 (the Act), it has been determined that for the purpose of the definition of ‘boarding house’ and ‘lodging house’, the maximum tariffs, excluding GST, that a boarding house or lodging house may charge tariff-paying occupants are:

1. Where full board and lodging is provided:

$453 per week for single accommodation; or

$747 per week for a family or shared accommodation

Where less than full board or lodging is provided:

$305 per week for single accommodation; or

$502 per week for family or shared accommodation

Notice giving effect to these decisions has been published in the NSW Government Gazette (Government Gazette No 140 – 19 April 2024).

Maximum Interest Rate on Overdue Rates and Charges

• In accordance with section 566(3) of the Act, it has been determined that the maximum rate of interest payable on overdue rates and charges for the period 1 July 2024 to 30 June 2025 will be 10.5% per annum.
• The methodology used to calculate the interest rate applicable for the period 1 June 2024 to 30 June 2025 is the Supreme Court methodology (the Reserve Bank cash rate plus 6%), rounded to the nearest half per cent. The cash rate used for the purposes of the maximum interest rate for local government is based on the cash rate set by the Reserve Bank of Australia on 5 December 2023.
• Notice giving effect to these decisions has been published in the NSW Government Gazette (Government Gazette No 140 – 19 April 2024).

Section 603 Certificate

• Under section 603 of the Act, councils may issue a certificate as to the amount (if any) of rates, charges, etc. due or payable to the council for a parcel of land. Section 603(2) states the application must be accompanied by the approved fee. In accordance with the approved methodology, the approved fee for 2024-25 is determined to be $100. This is an increase of $5 from the 2023-24 fee.
• This determination applies to the issuing of a certificate for the matters specified in section 603(2) of the Act. Where a council offers to provide other information as an optional service, the council is not prevented from separately determining an approved fee for that additional service. Furthermore, a council is not prevented from determining approved fees for additional services required by an applicant for the expedited processing of a Section 603 Certificate.

Statutory limit on the maximum amount of minimum rates

• Following a recommendation by Independent Pricing and Regulatory Tribunal (IPART), clause 126 of the Local Government (General) Regulation 2021 will be amended on 1 July 2024 by the Local Government (General) Amendment (Minimum Amounts of Rate) Regulation 2024,so that under section 548(3)(a) of the Act, the maximum amount of the minimum ordinary rate will be $617 for 2024-25.
• The maximum amount of a minimum special rate (not being a water supply special rate or a sewerage special rate) prescribed by section 548(3)(b) of the Act will remain unchanged at $2.

Where to go for further information

• Office of Local Government has further information available at https://www.olg.nsw.gov.au/councils/council-finances/rating-and-special-variations/

Douglas Walther

Acting Deputy Secretary, Office of Local Government