Cessnock City Council will meet on 14 January 2026 to vote on recommendations expected to contribute to Council's financial sustainability into the future, following an in-depth independent investigation and a comprehensive community engagement campaign.
At the meeting, Councillors will consider a recommendation to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent one-year Special Variation (SV) of 39.9%, inclusive of the applicable rate peg, for the 2026/27 financial year alongside key proposals to investigate adjustments to the base rate and conduct a 12-month review of the distributive equity of the rate structure.
The proposals come after months of independent review and analysis of Council's financial history, current position, and future outlook by economic expert Professor Joseph Drew and his team of three professors, as well as extensive community consultation.
Affordability and cost of living pressures were common issues raised during the community consultation, which included 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 Council's website and social media channels.
In response to the community feedback, Council is modelling a potential adjustment to base rates. Under the proposal, the base rate could be adjusted across all rating categories - with the aim of reducing the impact of any future rate increase on the most vulnerable ratepayers.
The Council report recognises that the independent analysis demonstrates the proposed Special Variation is necessary for Council's drive towards financial sustainability, while the proposals to adjust the base rate and review the rating structure is in response to community 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.
Councillors adopted an updated Financial Hardship Policy in late 2025 which introduces expanded hardship 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.
The review will 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. The meeting papers and a link to Council's YouTube channel are available here: https://www.cessnock.nsw.gov.au/Council/Council-meetings/Minutes-and-agendas
