Sutherland Shire Council has applied to the Independent Pricing and Regulatory Tribunal (IPART) for a special rate variation that would see rates increase by 5.8% from July 2026, significantly above the standard rate peg of 3.2%.

The proposal, if approved, would see the average residential ratepayer pay an additional $127 annually, with council citing a growing infrastructure maintenance backlog and cost pressures as justification for the increase.

Why Council Wants More

Council’s application outlines several factors driving the request:

Infrastructure Backlog Years of constrained rate increases have created a $180 million backlog of infrastructure maintenance across roads, footpaths, stormwater systems, and community facilities. Council argues this backlog is growing faster than current funding allows it to be addressed.

“We’re patching roads that need full reconstruction,” explained council’s finance director Angela Morrison. “We’re doing the minimum on assets that really need proper renewal. Eventually that catches up with you.”

Rising Costs Construction and maintenance costs have increased substantially faster than inflation in recent years. Council estimates it now costs 40% more to deliver the same works than it did five years ago.

Expanded Services Community expectations have grown, with residents requesting enhanced services including extended library hours, more parks maintenance, improved waste services, and greater environmental programs. These can’t be funded from existing revenue.

What the Money Would Fund

Council’s application specifies how additional revenue would be allocated:

Area	Proposed Investment
Road renewal	$4.2 million additional annually
Footpath and cycleway	$1.8 million
Stormwater infrastructure	$2.1 million
Community facilities	$1.5 million
Parks and recreation	$1.2 million
Coastal management	$0.8 million

Community Response

The proposal has generated strong opinions across the Shire.

Critics argue residents are already struggling with cost-of-living pressures and question council spending priorities.

“My rates have gone up every year while services feel the same or worse,” said Cronulla resident Mark Thompson. “Where’s the money going? Fix the basics before asking for more.”

Resident action group Sutherland Ratepayers Association has organised opposition, arguing council should find efficiencies before increasing charges.

Supporters counter that infrastructure neglect has consequences that ultimately cost more to fix.

“I’d rather pay a bit more now than have my car damaged by potholes or see flooding because drains weren’t maintained,” argued Gymea resident Patricia Walsh. “You get what you pay for.”

IPART Process

The special rate variation process involves:

1. Council application to IPART (completed)
2. Public exhibition period (January 15 - March 1)
3. Public submissions to IPART
4. IPART assessment and determination
5. Decision announced (typically late April/May)

IPART assesses whether councils have demonstrated genuine need, consulted meaningfully with communities, and shown sound financial management.

Have Your Say

Residents can make submissions to IPART through several channels:

• Online at ipart.nsw.gov.au
• Email to [email protected]
• Mail to IPART, PO Box K35, Haymarket Post Shop NSW 1240

Council is also hosting community information sessions:

• February 3, 6pm: Sutherland Entertainment Centre
• February 10, 6pm: Cronulla RSL
• February 15, 10am: Engadine Community Centre

Submissions must be received by March 1, 2026 to be considered.

What Happens Next

If IPART approves the variation, the increase would apply from July 1, 2026 and would be permanent, forming the new base for future rate calculations.

If rejected, council would receive only the standard rate peg increase of 3.2%, forcing difficult decisions about which services or projects to defer or cancel.

Council has indicated it will present detailed spending plans if the variation is approved, with annual progress reports to ensure funds are used as promised.