FAQs
What is the Environmental Levy?
Since 2004 ratepayers in Randwick City have paid a little bit more on their rates each year to go towards sustainability initiatives. This levy has delivered important improvements across our City and Council is seeking to continue it.
What is the rate peg?
The rate peg is the percentage that councils in NSW are permitted to increase their overall rates revenue by each year. The rate peg amount varies each year and is determined by an independent organisation called IPART – The Independent Pricing and Regulatory Tribunal.
Who is responsible for deciding whether the Levy continues?
As the Environmental Levy is an increase to your rates over and above the set rate peg, councils must apply to IPART for approval to vary rates income above the set rate peg. This process is known as a Special Rate Variation. IPART conducts a thorough assessment of applications from councils taking into consideration the need for the extra revenue, how it will be spent, council financial efficiencies and community feedback. IPART may approve proposals completely, in part or reject them.
Will my rates go up by 11.67% in real terms?
No! This figure shows how much Council’s total rates income is proposed to increase in 2024/25 from a baseline of no Environmental Levy and no rate peg increase. As you’re already paying the Environmental Levy, in real terms your increase will be the mandatory rate peg (estimated to be 5%).
How do I work out how much Environmental Levy I will pay?
Your levy amount is listed on your July rates notice. Each property owner pays a slightly different amount depending on the value of your property. The figures on the table on the opposite page show how much the average residential or business ratepayer will pay. Most residential ratepayers will actually pay less than the average.
When will the Environmental Levy end?
We are proposing to retain the Environmental Levy permanently in the rates base, rather than seeking approval for another 5-year timeframe (as we have done previously).
What is Council’s view?
We support continuing the levy and believe this is the best financial, social and sustainable outcome.
What happens if the levy doesn’t continue?
Council will be worse off by about $6M in annual funding. This means that the projects proposed in this information booklet either won’t happen, be reduced in scale or delayed.