Most Perth councils aiming to implement annual rate hikes despite cost-of-living concerns
Cost-of-living concerns won't stop WA councils from implementing an annual rate hike of at least 3 per cent in coming weeks, homeowners have been warned.
Analysis by The Sunday Times found most metropolitan councils are aiming for an uplift of between 3.5 and 4.5 per cent when the next financial year begins in July.
Some – such as the City of Canning – are proposing rates will jump as much as 6.85 per cent.
The WA Local Government Association was at pains this week to point out that local governments across WA have very different needs when it comes to spending, so it stands to reason that their annual slug of ratepayers will differ too.
'Local Governments across Western Australia all have different expenditure profiles, based on their geographical size, communities and assets and it is important local governments take into account their own circumstances when considering cost pressures,' a spokesperson said.
WALGA calculated industry costs increased 3.2 per cent last year, which represents the price rises councils face just to continue business as usual.
In April – about the time councils were getting into the nitty gritty of their spending budgets for the next year – the figure was forecast to continue to inflate at an even slightly higher rate.
Known as the Local Government Consumer Index, it sets the benchmark for where councils need to start when deciding where to set rates to avoid their own case of bill shock.
'(It) measures price changes of goods that represent categories of expenditure of Local Governments across Western Australia,' a WALGA spokesperson said. 'The LGCI is calculated and compiled by WALGA each quarter to assist local governments in decision making, particularly around budgeting and financials.
'This analysis provides important information to Local Government leaders in understanding and responding to a changing economy and its impacts on the Local Government sector in the Western Australian context.'
Only the City of Perth, which relies less on residential rates to underpin its income stream, so far is proposing a rise lowed than the LGCI – and even that is being advertised at 3.1 per cent.
The City of Canning has long been one of Perth's cheapest for rates but this year finds itself grappling with what could be the highest rates rise in 2025-26 for the entire metropolitan area, currently advertised at 6.85 per cent.
Canning mayor Patrick Hall promised the council and its business leaders would work hard behind the scenes in coming weeks to lower the figure and provide some relief for ratepayers.
'The city and its executive have assured us they will use every lever at their disposal to ensure that the rate that we settle on will be — we would hope — significantly lower than the 6.8 being advertised, and that will be the intention,' he said.
'We are a low rating council, but that is not a badge of honour for a council.
'We need to be providing a sustainable level of investment in all the things that make up a big council, and we are a big council.
'Our population is growing and people's expectations grow with that. We need to be able to invest in maintaining the assets we have and providing the lifestyle and amenity not only demand but that they deserve.
'We have spent an incredible amount of money in new parks and playgrounds and that sort of amenity that really improves the lifestyle of young families.'
In the City of Nedlands, one of the costs outlined in their 4.8 per cent proposed rise is to pay for an IT upgrade of the city's software and network infrastructure.
The council explained that alone was worth about 2 per cent of the rise, with the remainder effectively to meet the LGCI.
It left some on the council, which threw around figures as high as 5.4 per cent, questioning whether there would be enough money in the budget to pay for some of the projects expected in the local community.
Meanwhile cost-of-living concerns moved one south of river council to find different help for individuals who will struggle with the coming rates impost.
The City of Rockingham won't shy from a rates rise this year but it has introduced interest-free bill smoothing, meaning their locals won't be charged any more to pay by weekly instalments.
Most councils charge at least 5.5 per cent for that privilege, yet a handful offer it free.
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10 hours ago
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Most Perth councils aiming to implement annual rate hikes despite cost-of-living concerns
Cost-of-living concerns won't stop WA councils from implementing an annual rate hike of at least 3 per cent in coming weeks, homeowners have been warned. Analysis by The Sunday Times found most metropolitan councils are aiming for an uplift of between 3.5 and 4.5 per cent when the next financial year begins in July. Some – such as the City of Canning – are proposing rates will jump as much as 6.85 per cent. The WA Local Government Association was at pains this week to point out that local governments across WA have very different needs when it comes to spending, so it stands to reason that their annual slug of ratepayers will differ too. 'Local Governments across Western Australia all have different expenditure profiles, based on their geographical size, communities and assets and it is important local governments take into account their own circumstances when considering cost pressures,' a spokesperson said. WALGA calculated industry costs increased 3.2 per cent last year, which represents the price rises councils face just to continue business as usual. In April – about the time councils were getting into the nitty gritty of their spending budgets for the next year – the figure was forecast to continue to inflate at an even slightly higher rate. Known as the Local Government Consumer Index, it sets the benchmark for where councils need to start when deciding where to set rates to avoid their own case of bill shock. '(It) measures price changes of goods that represent categories of expenditure of Local Governments across Western Australia,' a WALGA spokesperson said. 'The LGCI is calculated and compiled by WALGA each quarter to assist local governments in decision making, particularly around budgeting and financials. 'This analysis provides important information to Local Government leaders in understanding and responding to a changing economy and its impacts on the Local Government sector in the Western Australian context.' Only the City of Perth, which relies less on residential rates to underpin its income stream, so far is proposing a rise lowed than the LGCI – and even that is being advertised at 3.1 per cent. The City of Canning has long been one of Perth's cheapest for rates but this year finds itself grappling with what could be the highest rates rise in 2025-26 for the entire metropolitan area, currently advertised at 6.85 per cent. Canning mayor Patrick Hall promised the council and its business leaders would work hard behind the scenes in coming weeks to lower the figure and provide some relief for ratepayers. 'The city and its executive have assured us they will use every lever at their disposal to ensure that the rate that we settle on will be — we would hope — significantly lower than the 6.8 being advertised, and that will be the intention,' he said. 'We are a low rating council, but that is not a badge of honour for a council. 'We need to be providing a sustainable level of investment in all the things that make up a big council, and we are a big council. 'Our population is growing and people's expectations grow with that. We need to be able to invest in maintaining the assets we have and providing the lifestyle and amenity not only demand but that they deserve. 'We have spent an incredible amount of money in new parks and playgrounds and that sort of amenity that really improves the lifestyle of young families.' In the City of Nedlands, one of the costs outlined in their 4.8 per cent proposed rise is to pay for an IT upgrade of the city's software and network infrastructure. The council explained that alone was worth about 2 per cent of the rise, with the remainder effectively to meet the LGCI. It left some on the council, which threw around figures as high as 5.4 per cent, questioning whether there would be enough money in the budget to pay for some of the projects expected in the local community. Meanwhile cost-of-living concerns moved one south of river council to find different help for individuals who will struggle with the coming rates impost. The City of Rockingham won't shy from a rates rise this year but it has introduced interest-free bill smoothing, meaning their locals won't be charged any more to pay by weekly instalments. Most councils charge at least 5.5 per cent for that privilege, yet a handful offer it free.
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