the beaches rate rise: everything you need to know
Earlier this year, Northern Beaches Council proposed a rate rise – a 29% increase phased in over three years, or 39.6% if you include the standard rate peg. It left many residents asking, Why are council executives paid so much? And are they delivering value for money? We reached out to Mayor Sue Heins to discuss and debate.
On January 28, 2025, Northern Beaches Council voted 8-7 to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a Special Variation to rates. The application was submitted on February 3, and if approved, would mean an average annual increase of $673 for households and $1611 for businesses.
A survey revealed 51% of local ratepayers supported a smaller increase of 10.7%, while 49% backed a bigger hike. The decision has sparked backlash, with many questioning the need for such a significant rise. Mayor Sue Heins says it’s a tough but necessary move.
“This was not an easy decision which I know weighed heavily on every Councillor,” she says. “With inflation pushing up the cost of everything Council does, the long-term financial sustainability was at risk. If we can’t maintain and improve our ageing assets, we’ll be forced to close them or spend more in the long run.”
IPART limits how much rates can rise each year. Over the past four years, inflation has climbed 24%, while council rates have gone up 11%. Mayor Heins says that gap has become unsustainable.
“Councils across NSW are facing similar issues, with five others applying for a variation this year and over 50 councils in the last nine years.”
The Mayor says Council’s worked to balance priorities and avoid unnecessary costs in a way that’s aligned with community needs and priorities.
“The funding system local government is forced to operate under is broken which has now been recognised by two parliamentary inquiries and IPART. Our Council’s never applied to IPART for a full special variation to increase rates. But the gap is too large now.”
Where’s the Money Going?
Councils play a crucial role when it comes to delivering essential services, maintaining infrastructure and shaping community development.
“Northern Beaches Council is a half-billion-dollar service-based organisation, the 4th largest in NSW, managing $5.6 billion in assets for almost 270,000 residents,” Heins explains. “As the state’s 4th largest Council, the breadth of our service delivery is significant, and staff are essential to delivering those services.
Some residents have questioned executive salaries, but Heins says all council employees, including the CEO, are subject to ongoing performance assessments and annual reviews conducted by the elected Council.
“As a service organisation, a reduction in staff equates to a reduction in services,” she adds. “If there’s less staff to repair rockpools, run libraries, clean public toilets, fix potholes and so on, the service level drops. Our employee costs and our organisational structure are consistent with industry benchmarks and commensurate with other local government organisations of a similar size.”
To help ease the financial strain, the Council has identified millions in cost savings, including cuts to back-office expenses, fleet costs and energy contracts.
“These are on top of the $29.5 million per year saved since amalgamation,” Heins says. “We’re continuing to find new efficiencies, but those alone aren’t enough to fill the gap.”
Even with these savings, Heins says the rate increase is essential to maintain infrastructure, expand environmental programs and manage increasing natural disaster risks. By year three, the increase will generate an additional $17 million for projects prioritised by the community.
Improvements include:
Upgrades to roads, footpaths, and bridges
Better playgrounds, parks, and sporting facilities
More frequent tree maintenance, compliance checks, and town centre programs
Enhanced environmental programs, including bushfire protection
Major renewal projects like the Warringah Aquatic Centre
A dedicated fund for natural disaster recovery
What’s Next?
The rate rise isn’t set in stone yet. IPART still needs to approve it. In the meantime, Council will continue working on cost savings while balancing community priorities.
Northern Beaches Rate Hike – Fair or Outrageous?
While Northern Beaches Council is proposing a nearly 40% rate hike, CEO Scott Phillips is raking in over $500,000 a year, nearly as much as the Prime Minister. And he’s not alone. Other senior council executives are also taking home huge paychecks.
So, we have to ask, where’s your money going? Are these sky-high salaries justifiable, or should more council funds be directed toward services that matter?
