North Sydney Council plans to increase rates by 87% over two years, even though only 5% of residents support the move.
The proposal, known as Option 2A, will face a final council vote on 10 February. If approved, council will apply to the NSW Independent Pricing and Regulatory Tribunal (IPART) for permission to exceed the state-mandated rate cap. If IPART grants approval, the increase will take effect from July 2025.
Rate Hike Will Affect Residents and Businesses
The plan includes two major rate increases:
- 2025/26: A 45% increase in levies.
- 2026/27: A 29% increase in rates.
- Residential Rates: The minimum charge will jump from $715 to $1,200.
- Business Rates: The minimum charge will rise from $715 to $1,400.
Council claims that without these increases, it will struggle to fund essential services and infrastructure projects.
How Council Chose This Option
Council considered four rate hike options, with cumulative increases ranging from 65% to 111% over three years.
Despite strong public opposition, council chose Option 2A. The decision followed a 7-2 vote at a November 25 meeting, which allowed public consultation from 27 November to 10 January.
Olympic Pool Redevelopment Blows Out to $122 Million
Council says the rate increase is necessary due to serious financial challenges, largely caused by the North Sydney Olympic Pool redevelopment.
The 88-year-old heritage-listed pool, located beneath the Sydney Harbour Bridge, has been closed since early 2021. Its reopening has been delayed multiple times, while project costs have spiralled to $122 million.
Rate Hike Slammed by Residents and Local Leaders Slam the Plan
The rate hike has triggered widespread backlash, with residents arguing that it is unfair during a cost-of-living crisis. Many believe council should find alternative funding solutions instead of placing the burden on ratepayers.
Local MP Tim James has called the proposal “disgraceful”, blaming poor financial management. Councillor Jessica Keen has also raised concerns, warning that the increase will hit first-home buyers and retirees the hardest.
Community groups have announced protests before the 10 February vote, demanding greater transparency and accountability.
What Happens Next?
Council will vote on the proposal on 10 February . If approved, it will submit a special rates variation application to IPART for final approval.
With protests expected and pressure mounting, residents now wait to see if the council will reconsider—or push ahead with one of North Sydney’s biggest rate hikes.
Published 7-Feb-2025