In a contentious Liverpool Council meeting this week, ratepayers learned they face a 6% rate increase from July 1st, 2025, exceeding the standard 4.9% increase set by IPART for the 2025/26 financial year. The higher increase is permitted due to Liverpool’s classification as a growth council.
Amid rising costs, Councillor Peter Ristevski proposed an innovative solution during the meeting – offering a 5% discount to ratepayers who pay their annual rates in full upfront. The proposal aims to build upon the current trend whereby 14% of Liverpool ratepayers already choose to pay their yearly rates in one lump sum.
“This initiative could benefit both residents and Council’s bottom line,” said Councillor Ristevski. “With Council currently servicing over $200 million in loans for the Liverpool Civic Place project at interest rates between 6-6.5%, encouraging early payment could significantly reduce Council’s borrowing costs and provide a saving benefit to ratepayers if they can manage to pay upfront”
Most analaysts and forecasters are predicting that CPI will remain steady at around 2-2.5% for the next 12 months which has some residents asking if a 6% rate increase is actually fair or reasonable.
During open session, Mayor Ned Mannoun while in discussion with another Council Employee revealed that major ratepayer Westfield contribute approximately $3 million dollars annually in council rates, while the Department of Housing pays around $5 million.
The proposed discount scheme could potentially provide benefit to ratepayers and improve Council’s cash flow if passed. However, the motion failed to gain immediate support, with Council voting to defer the matter to a future Governance Committee meeting for further discussion.
Its important to note that councils cannot independently determine rate increases – this power rests with the Independent Pricing and Regulatory Tribunal (IPART) – they can however explore innovative ways to manage their financial relationships with ratepayers.
This latest news comes as a massive blow to home owners and will likely result in landlords having to consider further increases in rent to cover the increased costs.
“It just seems to be getting harder and harder to afford the basics” said a Prestons resident this afternoon. “I don’t know where the extra money is going to come from in my budget” she added.
Readers can watch the entire discussion from the Liverpool Council meeting on Youtube here.
Council has not decided on any rate increase, that will be part of the Budget process later this year, however, as an Elected LCIT Councillor, I will NOT be supporting the 6% rate rise allowed by IPART. Council needs to be far more frugal in its operational budget. Council had an increase of $14.1m in the 23-24 wages Budget which resulted in some Staff members obtaining increases of between 37% and 49%, that is an unfair increase expected to be paid for by ratepayers already suffering from lack of services and infrastructure.
Thank you for this clarification Deputy Mayor Harle.