Rates Harmonisation FAQs

Since amalgamation of Armidale Dumaresq and Guyra Shire Council in 2016 Council has been required to maintain two rating systems for the local government area. This was due to a four year rate freeze imposed by the NSW Government. This meant that Council could not adjust rates beyond the rate peg in the first four years after amalgamation which saw different rates being paid in the former local government areas.

Under current legislation Council must maintain one consistent rating structure to ensure a fairer and more equitable system across all rating categories within the Armidale Regional Local Government Area. This will take effect from July 1 2021 and will only affect general rates. There will be no increase in total rates collected by Council due to harmonisation, but the distribution between rate categories needs to be made more equitable.

Council has made representations to the NSW Government and has supported proposed legislative amendments to allow for the impacts of rates harmonisation to be introduced more gradually than what is currently required. For the purpose of this community engagement process; however, we must advise the community about the impacts of rates harmonisation it must be applied under the current legislation. If and when amended legislation is available, Council will look at how this can assist with mitigating the adverse impacts of the rates harmonisation process for impacted ratepayers.

The harmonisation of rates will result in changes for some property owners. This will not generate any additional income for Council; rather, it will be a redistribution of the total rates income.

Based on current modelling, individual ratepayer impacts will be experienced by the following ratepayer categories due to harmonisation:

• Farmland – under the Local Government Act Council can no longer maintain separate rating categories for Armidale and Guyra farmland
• Non-Urban/Rural Residential – under the Local Government Act Council can no longer maintain separate rating categories for Armidale and Guyra rural residential
• Business Villages and Non-Urban – under the Local Government Act Council can no longer maintain separate rating categories for village and non-urban business

In addition to this, there may be some impacts on ratepayers in villages where they were previously split into the 2 former local government areas.

Following the merger in 2016, the NSW Government imposed a three year rates freeze, which meant Armidale Regional Council could not adjust rates during that time. This freeze was extended for an additional year to 2021. Council will move to the single rates structure by July 1 2021.

Yes. Council is moving towards a single rates structure as it is a requirement from the NSW Government.