Cessnock City Council will meet this week to vote on a controversial rate rise, at nearly 40%, much to the dismay of its residents.
Councillors are expected to consider a recommendation on Wednesday 14 January to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent one-year Special Variation (SV) of 39.95%, inclusive of the applicable peg, for the 2026/27 financial period.
They’ll also contemplate key proposals to investigate adjustments to the base rate and conduct a 12-month review of the distributive equity of the structure.
The move has angered many locals, anticipated to pay an extra $596.
A petition, which boasts more than 5,600 signatures, was established on change.org as well.
“People are already struggling as it is,” said one who requested anonymity.
“There’s no excuse, or justification, for a 40% increase.
“Why should we pay the price for council’s bad management?”
But, Cessnock City deems it necessary for its sustainability into the future.
The suggestions arise after months of independent review and analysis of council’s financial history, current position and outlook by economic expert Professor Joseph Drew and his team of three professors.
It includes community consultation, too, which comprised the circulation of a fact sheet and survey, seven public meetings, 10 pop-up listening posts and publication of detailed information and explanatory videos on Cessnock City’s website and social media channels.
Although, there’s some debate about how many residents participated.
It’s understood affordability and cost-of-living pressures were common issues raised.
In response to the feedback, council is modelling a potential adjustment to base rates.
Under the proposal, it could be amended across all rating categories – with the aim of reducing the impact of any future rate hike on the most vulnerable ratepayers.
“The council report recognises that the independent analysis demonstrates the proposed Special Variation is necessary for our drive towards financial sustainability,” a spokesperson said.
“While the proposals to adjust the base rate and review the rating structure is in response to the feedback.
“Councillors will consider receiving a further report to adjust the base rate across all rating categories and ease the potential impact of any future rate rise to better support those in our community most vulnerable to increasing cost-of-living pressures.
“They adopted an updated Financial Hardship Policy in late 2025, which introduces expanded provisions to provide targeted assistance and support.
“Councillors will separately vote on a recommendation to conduct a more detailed 12-month review into the distributive equity of our overall rate structure after consistent concerns regarding how rates are distributed, particularly in relation to capacity to pay for lower-value residential properties, small businesses, and other vulnerable cohorts were identified during the engagement.
“It’ll examine how the existing mix of ad valorem rates, base amounts, minimum rates and any differential rating categories distributes the rating burden across the community, with particular regard to capacity to pay, access to services and unintended regressive impacts.”
Members of the public are welcome to attend the meeting in-person or online via the live stream on council’s YouTube channel.
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