21-04 Information about Rating 2021-22

Circular Details21-04 / 16 April 2021 / A758690
Previous Circular20-19 – Information about Ratings 2020-21
Who should read thisCouncillors / General Managers / Council staff
ContactPerformance Team (02) 4428 4100 /
Action requiredInformation / Council to Implement
PDF Version21-04 Information about Rating 2021-22

What’s new or changing

  • The maximum boarding house tariffs for 2021-22 have been determined.
  • The maximum interest rate payable on overdue rates and charges for 2021-22 has been determined.
  • The section 603 certificate fee for 2021-22 has been determined.
  • The statutory limit on the maximum amount of minimum interest rates for 2021-22 has been determined for commencement on 1 July 2021.

What this will mean for your council

  • Councils should incorporate these determinations into their 2021-22 rating structures and Operational Plan Statement of Revenue Policies.

Key points

Boarding House Tariffs

In accordance with section 516 of the Local Government Act 1993 (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:

a) Where full board and lodging is provided:
$401 per week for single accommodation; or
$663 per week for a family or shared accommodation
b) Where less than full board or lodging is provided:
$270 per week for single accommodation; or
$446 per week for family or shared accommodation

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 2021 to 30 June 2022 (inclusive) will be 6.0% per annum.

The methodology used to calculate the interest rate 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 as at 2 December 2020.

Notice giving effect to these decisions has been published in the NSW Government Gazette.

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 2021-22 is determined to be $85. This is unchanged from the 2020-21 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 IPART, clause 126 of the Local Government (General) Regulation 2005 will be amended on 1 July 2021 by the Local Government (General) Amendment (Minimum Rates) Regulation 2020 so that under section 548(3)(a) of the Act, the maximum amount of the minimum ordinary rate to be $565 for 2021-22.

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

Tim Hurst
Deputy Secretary
Local Government, Planning and Policy