23-02 Information about Ratings 2023-24

Circular Details23-02 / 8 May 2023 / A849639
Previous Circular22-06 – Information about Ratings 2022-23
Who should read thisCouncillors / General Managers / Council staff
ContactPerformance Team / (02) 4428 4100 /
Action requiredInformation / Council to Implement
PDF Version23-02 Information about Ratings 2023-24

What’s new or changing

  • The maximum boarding house tariffs for 2023-24 have been determined.
  • The maximum interest rate payable on overdue rates and charges for 2023-24 has been determined.
  • The Section 603 Certificate fee for 2023-24 has been determined.
  • The statutory limit on the maximum amount of minimum rates for 2023-24 has been determined for commencement on 1 July 2023.

What this will mean for your council

  • Councils should incorporate these determinations into their 2023-24 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 (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:
a) Where full board and lodging is provided:
$432 per week for single accommodation; or
$713 per week for a family or shared accommodation
b) Where less than full board or lodging is provided:
$291 per week for single accommodation; or
$479 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 2023 to 30 June 2024 (inclusive) will be 9.0% per annum.
  • The methodology used to calculate the interest rate applicable for the period 1 June 2023 to 30 June 2024 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 6 December 2022.
  • Notice giving effect to these decisions has been published in the NSW Government Gazette (Government Gazette No 146 – 31 March 2023).

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 2023-24 is determined to be $95. This is an increase of $5 from the 2022-23 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 2021 will be amended on 1 July 2023 by the Local Government (General) Amendment (Minimum Amounts of Rate) Regulation 2023 so that under section 548(3)(a) of the Act, the maximum amount of the minimum ordinary rate will be $590 for 2023-24.
  • 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

Brett Whitworth
Deputy Secretary
Local Government