Mining companies operating in the Upper Hunter are facing a significant proposed rate increase of 29 per cent, as the local council moves to future-proof its finances ahead of the region's transition away from coal.
Council's Proactive Financial Safeguard
Muswellbrook Shire Council is pushing for a special rate variation that would apply only to mining land, meaning residential and other business ratepayers would not be directly impacted. Councillors were expected to vote to open public feedback on the proposal at an extraordinary meeting held on Tuesday night.
The council argues the move is essential for maintaining financial stability, core services, and critical infrastructure. The region is grappling with a forecasted steady decline in mining rate revenue as local coal pits move towards eventual closure.
It is estimated that mine closures will slash the council's total rate income by 25 per cent over the next decade, equating to a loss of roughly $5 million annually. If approved by the state regulator, the proposed mining rate hike would inject an additional $6 million per year into the council's budget.
Mayor Advocates for Forward Planning
Muswellbrook Mayor Jeff Drayton stated the proposal represents timely and responsible planning for the shire's future. "We are not like other councils, we are not waiting until we are in financial distress to make the right decisions now for our community," Cr Drayton said.
"We know what's coming and we know if we do nothing, our Shire will decline and residents will ultimately pay the price for mine closures. Acting now lets us protect essential services while keeping our community affordable."
He emphasised the council's continued support for the mining industry but affirmed the duty to plan ahead for residents. "We've always backed mining in Muswellbrook, and we'll continue to do so - but we owe it to our residents to plan ahead and put their interests first."
Funding the Transition and Community Consultation
The revenue generated from the increase would be directed towards two key areas. A portion would bolster the council's future fund, designed to help build alternative income streams during the energy transition. The remainder would fund efforts to improve council efficiency and attract new industries, jobs, and investment to the Muswellbrook area.
The final decision on any rate rise rests with the NSW Independent Planning and Regulatory Tribunal (IPART). A critical part of IPART's assessment is the council's consultation with ratepayers.
To that end, Muswellbrook Shire Council will host four community forums on the proposal and has launched an online survey to gauge public sentiment. The consultation period is set to close on January 7, 2026. Full details of the proposal are available on the council's website.
