A Federation Shire councillor is advocating for a more equitable rates structure as the council navigates its financial future. During a meeting on July 8, 2025, Councillor David Harrison emphasized the need for the council to be perceived as fair rather than “notorious” following a contentious decision to raise rates by 19 percent for the upcoming financial year. This increase came on the heels of a special rate variation granted to the council by the NSW Independent Pricing and Regulatory Tribunal in May, as recommended by Joseph Drew, a professor from Newcastle University.
Harrison’s remarks came as the council discussed the structure of its rates, a topic that has sparked significant public debate. He pointed out that the previous council’s application for a special rates variation had received considerable criticism, impacting community discussions. “I think this council needs to be known for developing a new and equitable rates policy,” Harrison stated. He called for a policy that reflects the changing demographics of the area, fluctuating farm incomes, and the need to stimulate local industry.
Prior to the council meeting, local farmer Richard Sargood proposed a new model for rate distribution, suggesting that rates income be divided into 50 percent residential, 40 percent rural, and 10 percent business. “If you locked in these percentages going forward, this annual confrontational discussion on how to apply rate increases would be moot,” Sargood argued.
The council’s chief financial officer, Jo Shannon, responded to Sargood’s proposal by explaining that such a division could not be applied beyond a single year. Councillor Susan Wearne also noted that the distribution between residential and farmland rates has fluctuated significantly over the years. Shannon recommended a base rate of $382.50, with varying ad valorem levels: 0.1776 cents for farmland, 0.4036 cents for residential, and 0.7865 cents for business. Under this proposal, the base rate would decrease by 10 percent, while ad valorem income would rise by 30 percent.
In a contrasting motion, Councillor Derek Schoen proposed maintaining a base rate of $505.75, reflecting a 19 percent increase, to align with the special rate variation. This motion faced rejection with a vote of 6-3, supported only by Schoen, along with fellow farmers David Bott and Richard Nixon.
Former mayor Pat Bourke urged the council to adopt Shannon’s original recommendation for the sake of providing more support to residents facing rising costs of living. Ultimately, the council reached a compromise, agreeing to maintain the base rate at $425 while increasing ad valorem income by 24 percent.
“This is a compromise position,” said Deputy Mayor Rowena Black. “It’s not the extreme of either end. We are not reducing the base rate; we are keeping it as it is and continuing to collect $425. It assists people with lower land values.”
As the council continues to grapple with its financial strategy, the focus remains on creating a more equitable approach to rates that reflects the community’s evolving needs.
