While some states set a “peg” that is supposed to work as a guide for how much they can rise,councils can apply for extra if there is a revenue shortfall.
For example,the peg was set at 3.7 per cent this financial year for councils in NSW,but Tenterfield Shire Council was approved for a 104.5 per cent increase over the next two years.
More than a dozen other NSW local councils also applied for more money to maintain services. In other states,increases of as much as 10 per cent are not uncommon.
But here’s what many people don’t know:wherever you are,however large the bill shock of council rates,you can get a reprieve from them. With one phone call.
This is the script to follow for instant rate relief.
Firstly,vitally,you must pick up the phone to your local councilbefore your rates bill is due. As with all aspects of your financial life that are making you too stretched right now,confessions get concessions.
After you have defaulted,you are in line for a fine or additional interest,but have the below conversation ahead of that,and you should be charged neither fees nor interest.