Muswellbrook Shire Council has voted to seek feedback on a special rate variation that would increase rates on mining land by 29 percent. The proposal, approved by councillors at an extraordinary meeting on Tuesday night, aims to safeguard the council's finances as the region transitions away from coal.
Under the plan, only mining land would face the higher rate, meaning other ratepayers would not be directly affected. The NSW Independent Planning and Regulatory Tribunal (IPART) will have the final say on the proposal, considering the council's consultation with ratepayers and the feedback received.
The council argues the rate rise is necessary for financial stability, essential services, and infrastructure as mining rate revenue declines. Mine closures are expected to reduce the council's overall rate income by 25 percent over the next decade, or $5 million a year. If approved, the mining rate rise would generate an additional $6 million annually.
Mayor Jeff Drayton said the council is being proactive. '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,' he said. 'Acting now lets us protect essential services while keeping our community affordable.'
Part of the revenue from the proposed rise would go to the council's future fund to build alternative income sources during the energy transition. The rest would fund improved council efficiency and efforts to attract new industries, jobs, and investment to Muswellbrook.
The council plans to hold four community forums before consultation closes on January 7 next year. Full details of the proposal will be available on the council's website.
