With Byron Shire ratepayers facing a proposed special rate variation that could push rates up by roughly a third over three years, a federal inquiry is examining whether councils are being asked to do too much with too little.
The House of Representatives Standing Committee on Regional Development, Infrastructure and Transport is holding another public hearing in Canberra today as part of its inquiry into local government funding and financial sustainability.
The inquiry is examining whether existing Commonwealth funding arrangements are adequate, including the Financial Assistance Grants that councils can spend according to local priorities.
For Byron, the timing is significant.
Council is considering an SRV that could increase rates by around 33 to 35 per cent cumulatively over three years from 2027, while also arguing that Commonwealth support has steadily eroded.
Mayor Sarah Ndiaye said Financial Assistance Grants had fallen from around one per cent of Commonwealth tax revenue in the mid-1990s to about 0.5 per cent today.
‘This is especially cruel for Byron Shire where essential services need to be delivered across a dispersed geographical area with a ratepayer base of only 15,500 properties, substantial visitor numbers, and the federal government has cut us off at the knees through their Federal Assistance Grants program,’ Cr Ndiaye said.
She said restoring the grants to one per cent would make ‘a massive difference’, allowing more spending on roads, parks, facilities and other services.
Byron Council has also told the federal inquiry that the way Financial Assistance Grants are distributed disadvantages the Shire because NSW’s formula places significant weight on property values.
Council argued that high land values do not necessarily translate into greater capacity to raise rates because NSW councils operate under rate-pegging rules.
Its submission pointed to neighbouring Ballina, saying that despite the two councils being of a similar size, Ballina received around $1.63 million more in Financial Assistance Grant funding in 2023/24.
Committee chair Fiona Phillips said the inquiry was hearing widely differing accounts of the pressures facing councils around the country.
‘The Committee wants to hear more about the differing challenges facing councils in metropolitan Melbourne, regional Victoria and remote Northern Australia … and the support available to them,’ she said ahead of today’s hearing.
Earlier hearings have also examined rising infrastructure costs, climate pressures and the difficulties councils face accessing federal funding programs.
For Byron ratepayers, the question now is whether any future boost in Commonwealth funding would ease the pressure behind the proposed SRV, or whether locals will still be asked to shoulder most of the burden.
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