Politics
Paddington Voters Decide: 2.5% Rates Cap for Three Years
Voters will decide on a measure to limit council rates rises to 2.5 per cent annually for three years, which would alter the amount ratepayers allocate each month to local charges.
How we reported this
The Paddington Bne electoral commission has finalised the wording for a November referendum that would impose a three-year cap on council rates increases at 2.5 per cent per year. The ballot measure applies to all rateable properties within the local government area and would replace the existing annual adjustment formula tied to the consumer price index plus an infrastructure levy.
Local government records show that rates collections formed 38 per cent of the council operating revenue in the 2025-26 financial year. The referendum follows the release of the draft 2026-27 budget in June, which projected an average rates bill of 1,920 local currency units for a median-valued residential property before any cap.
Direct Effects on Monthly Spending
For a household currently paying the median rates amount, the cap would reduce the 2027 bill by approximately 85 local currency units compared with the uncapped projection, according to calculations in the referendum explanatory statement. Renters in properties where rates are passed through leases could see landlords adjust asking rents more slowly if the measure passes. Fixed-income residents in outer wards, where average property values sit 12 per cent below the local median, would experience the largest percentage reduction in their rates share of total housing costs.
The legislation states that the cap would exclude new infrastructure charges approved by separate ballot and would not affect water or waste utility fees levied by the regional authority. Policy analysts note that households with recent property improvements valued above 50,000 local currency units would still face supplementary valuations outside the cap formula.
Next Steps for Residents
Ballot papers will be mailed to all enrolled voters on 15 October, with early voting available from 1 November at the three council service centres. The government says the policy will take effect from 1 July 2027 if approved, with the first capped notices issued in the 2027-28 rating period. The Productivity Commission has found in prior reviews that similar rate-limiting measures in other jurisdictions altered household discretionary spending by an average of 1.8 per cent in the first two years after implementation.