Muswellbrook Shire Council has been given the green light by IPART to increase rates charged to local mines, securing an estimated $6 million a year in additional revenue.
The decision follows a special rate variation application that applies exclusively to the mining rate category, with council stressing the change places minimal impact on residents and local businesses. Residential ratepayers will see an average increase of just under 60 cents per week, while business rates are expected to rise by about $2.20 per week, determined by the rate peg of 3.1 per cent.
Council representatives say the funding will be directed toward three main priorities: internal productivity improvements, boosting economic activity to attract new industries, and building a Future Fund to support long‑term financial stability.
“That Future Fund is like a community superannuation fund,” Mayor Jeff Drayton said.
“The idea is to build enough capital so it can help cover funding needs down the track and potentially reduce or limit rate increases in the future.”
Council acknowledged the mining industry was not enthusiastic about paying more, but said extensive consultation had taken place. While mines did not welcome the additional cost, council said companies understood the reasons behind the decision and what the money would be used for.
“The industry understood why we were doing it, and, in principle, agreed with the reasons we were doing it and what the money was to be spent on, said Cr Drayton.
“No one wants to pay more rates, but they understand it.
“Council’s good good relationship will continue with those mines.”
