Cessnock City Council has voted to seek a nearly 40 per cent rate increase, a move that residents and business owners fear will price people out of one of New South Wales’ fastest-growing regions. At a meeting on Wednesday night, councillors approved a permanent one-year special rate variation of 39.9 per cent, with nine in favour and four against. The council will now apply to the Independent Pricing and Regulatory Tribunal (IPART) for approval, which, if granted, could see some ratepayers face thousands of dollars in extra costs annually.
Residents like Fay Wiltshire expressed concern about affordability. “People are concerned about the cost of living and how are they going to make ends meet,” she said. Wiltshire warned that the hike could make the area unaffordable for young families, leaving only “elite people” able to live there. Business Hunter CEO Bob Hawes noted that the council has discretion on how the increase is distributed, meaning some ratepayers could see a 10 per cent rise while others face substantially more.
The rate increase was recommended after an independent review revealed the council had a budget deficit of more than $8 million, despite being one of the fastest-growing local government areas in the state. Mayor Daniel Watton said the decision was difficult but necessary to avoid administration. “If we didn't do something with this, we probably wouldn't have a council to defend,” he said, adding that the increase would raise an extra $20 million, funds he argued could have been covered by government financial assistance grants.
Former independent councillor Ian Olsen, who served for 24 years, said he had repeatedly raised concerns about the council’s financial trajectory. “In my last 12 years as a councillor, I spoke about how we were going backwards and we needed to reel it in or do something,” he said. Local business owner Michael Jenness, who runs a fresh food providore with 15 staff, said the hike would add pressure amid rising cost of living, noting that customers are already buying only what they need.
A mailed survey on the proposal drew responses from fewer than 5 per cent of residents. An independent report for the council said it was “reasonable to subscribe” that non-participation indicated strong opinions were not held, despite an online petition opposing the hike that gathered more than 5,000 signatures. IPART is expected to deliver a decision on the proposal in May.
