Rate Information This section of the report forms part of CN’s Revenue Policy and includes information on the proposed rates and charges structure, as well as general information about rates and charges for the 2022-2023 year. Current year rate increase The 2022-2023 budget is based on total 2021-2022 General Income from ordinary and special rates being increased by a total of 2.5%. This is above the determined increase of 1.2% (known as the rate peg) as announced by the Independent Pricing and Regulatory Tribunal (IPART) for CN. This is below what has been included in CN’s long-term financial plan and equates to a loss of income of $15 million over the next 10 years alone. To correct this, CN made an application to IPART for a Special Variation to increase rate income above this statutory maximum amount so that the gross rate yield increases by 2.5%, this will help counter the significant inflationary pressure on costs that is being experienced by all councils in NSW. IPART subsequently approved CN's application. An estimated gross ordinary rate income of in excess $173.37 million is proposed to be raised in 2022-2023. The breakdown of estimated ordinary rate income and number of properties per category is as follows: NUMBER OF PROPERTIES
GROSS RATE YIELD 2022/23 $(000S) SPECIAL VARIATION
67,106
110,580
9
23
Ordinary rates Residential Farmland Business (including sub-categories) Total Properties/Gross Ordinary Rate Income
5,019
62,767
72,134
$173,370
City of Newcastle
For the 2022-2023 rating year the base date land value to be used for rates calculation purposes is 1 July 2019. This is the same base date as that used for 2021-2022 rates.
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