Hon Ken Travers asks about the increase in local council rates in Perth, the impact of state government fees, and the drivers behind these increases. The Minister provides data on average increases, council with highest/lowest increase, and expenditure breakdowns.

AnsweredQoN 988Legislative Council
Asked
16 September 2015
Portfolio
Local Government

QuestionView source ↗

LOCAL GOVERNMENT — RATES
988. Hon KEN TRAVERS to the minister
representing the Minister for Local Government:
I refer to the Minister for Local
Government's concerns about local government rates rising much faster
than the consumer price index.
(1) What is the
average increase in local council rates across the Perth metropolitan area for
the 2015–16 year?
(2) How much of
this increase is due to increases in state government fees and charges,
including electricity and water changes?
(3) Which council
had the biggest increase?
(4) Has the
government identified the drivers of this increase?
(5) Which council
had the lowest increase?

AnswerView source ↗

I thank the member for some notice
of the question.
(1) It is 4.24 per
cent. This is the average for 28 of the 30 metropolitan local governments that
have published their rate increase information in their 2015–16 annual
budgets or provided it on their websites.
(2) Local
governments are responsible for setting their own rates, and ultimately
responsible for justifying their own rates increases. Analysis undertaken by
the Department of Local Government and Communities demonstrates that the
largest components of local government expenditure are employee costs,
materials and contracts, and capital works. Proportionally, the effect of
utilities expenditure, such as electricity and water, on rate increases is
varied and depends on a number of factors, including growth in some areas. The
increased budgeted utilities expenditure, as a portion of the total increased
expenditure for 2015–16, is as low as 0.14 per cent at one council, and averages between two and five per
cent among a random selection of councils.
(3) The Town of Victoria Park had an eight
per cent increase for the metropolitan area.
(4) The increase in expenditure on contracts
and materials represents 51.58 per cent of the Town of Victoria Park's
budgeted increased expenditure for 2015–16, and the increased
expenditure on employee costs represent 17.56 per cent of the Town of Victoria
Park's budgeted increased expenditure for 2015–16. The budgeted
increased expenditure on utilities, which includes electricity, street
lighting, water, gas and telecommunications, represents 1.82 per cent of the
Town of Victoria Park's budgeted increased expenditure for 2015–16.
(5) The City of Stirling had a 1.9 per cent
increase for the metropolitan area.

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