Local authorities in New England, Australia, are grappling with a persistent financial crisis, prompting both Uralla Shire and Glen Innes Severn Shire councils to apply for Special Rate Variations (SRVs). These applications, submitted to the Independent Pricing and Regulatory Tribunal (IPART), reflect what local leaders describe as a “broken funding system” struggling to sustain essential services.
Uralla Shire Council is requesting a substantial increase of 28.5 percent for the fiscal year 2026-27, followed by an additional 23 percent in 2027-28, resulting in a total rise of 51.5 percent over two years. Meanwhile, Glen Innes Severn is pursuing a more gradual increase spread over three years—21.5 percent in 2026-27, 12 percent in 2027-28, and 9 percent in 2028-29.
The mayor of Glen Innes Severn, Margot Davis, has previously labeled the need for SRVs a “silent crisis.” She emphasized that the request for increased rates is not made lightly. “Our community has been very clear, no one wants higher rates,” said Cr Davis. “Council doesn’t want them either, but we are being forced to make decisions in a system where costs are rising and funding from other levels of government has not kept pace.”
In her remarks, Davis highlighted the emotional toll of the SRV process on local communities. She noted that chronic underfunding is often misinterpreted as financial mismanagement. “The lion’s share of the issue comes from chronic underfunding,” she explained. “The impact of consultation and the SRV process tears communities apart.”
Glen Innes is a low socio-economic area, and residents are already feeling the pressure of rising living costs. Cr Davis pointed out that despite the council’s efforts to save between $1 million and $2 million, the options for cutting back on services are limited. Local councils are heavily regulated and unable to maintain unrestricted cash reserves, compelling them to pursue SRVs as the only viable route to financial sustainability.
The Glen Innes application underscores the council’s obligation to address a “significant and ongoing” operating deficit. It aims to maintain essential services, fund critical infrastructure, and ensure a positive cash flow for future growth. The council’s report noted that population and ratepayer growth constraints hinder revenue increases at current rates.
“This SRV is not about expansion or extravagance,” stated Cr Davis. “It is about protecting core services, maintaining essential infrastructure, and keeping this council financially viable into the future.” The need for increased rate revenue follows an independent review that recommended the council increase its rate revenue through a minimum rates increase.
Similarly, Uralla Shire Council is keen to reduce its reliance on grant funding while continuing to provide services to its community. Mayor Robert Bell criticized both federal and state governments for their inadequate funding, stating, “We were promised 2 percent of federal revenue, but we now receive only 0.54 percent.” He added that Local Government NSW is advocating for an increase to 1 percent, which he believes would significantly alleviate financial pressures.
Bell further criticized the current distribution of federal assistance grants, highlighting disparities that favor larger councils. “A council like the City of Sydney, with $400 million in the bank, still receives funding from a system that should be taking care of regional councils,” he noted. He described the necessity for SRVs as evidence of a failing funding system, asserting that the demand for rate increases among councils in the region indicates systemic issues.
“The fact that every council in this region has had to ask, or is asking for, a special rate variation over the last five years proves that the system is completely bankrupt,” Cr Bell said. “Our ratepayers, who can’t afford it, are facing a special rate variation just to maintain our assets.”
As community feedback is sought on these applications, the financial stability of these councils remains a pressing concern. Local leaders are calling for a reevaluation of the funding mechanisms that govern local governments, advocating for changes that ensure equitable support for all regions and communities.
