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Rates & fees

Rates & fees

Rates are the main way residents fund the council. Each year an independent regulator (IPART) sets a 'rate peg' — the maximum percentage the council can lift its total rates income without approval. Federation is a notable exception this cycle: on top of its ordinary rate pegs, IPART approved a large special rate variation (SRV) — an above-the-peg increase councils can apply for and that IPART must approve. Here's both figures, plus the things that actually change your bill.

New to these terms? Read them in plain English
Rate peg
The cap on how much a council's TOTAL rates income can rise this year.
Core peg
The rate peg before the population top-up — the part driven by rising costs.
Population factor
An extra slice of the rate peg for fast-growing councils.
Special Rate Variation (SRV)
Permission for a council to raise rates by more than the peg.
Land valuation
Your land's value, set by the state, used to split the rates bill between properties.
Pensioner rebate
A discount on rates for eligible pensioners.
Domestic waste charge
A separate annual fee for your bins — NOT part of the rate peg.
IPART
Sets the rate peg and reviews council pricing.
See the full explainer, with formulas →
Special rate variation (approved)
+69.94% total across 2025–26 (+52.01%) and 2026–27 (+11.8%)Approved by IPART on 14–16 May 2025, effective from 1 July 2025. Federation's application said the increase (which also converts earlier temporary increases from 2023–24 and 2024–25 into a permanent rate base) was needed to put council finances on a firmer long-term footing; IPART said it weighed the council's need for additional income against the impact on ratepayers. Mayor Cheryl Cook said the council needed 'a firm financial foundation to deliver our services well.'
4.8%IPART's ordinary rate peg for Federation for 2025–26 — the cap that would otherwise have applied without the special variation.
4.1%IPART's ordinary rate peg for Federation for 2026–27.
~$951 / year (2024–25, before the SRV takes effect)About 21% below the NSW average of ~$1,203 (OLG data). The approved SRV will lift this substantially from 2025–26 onward; the council's Revenue Policy / rates notices have the current dollar figures.
What the peg and SRV cap
Total rates income — not each household's bill directlyIndividual bills also depend on land value relative to other properties in the LGA.
Overdue interest (2025–26)
10.5% per annumA NSW-wide statutory maximum set annually by the state government under the Local Government Act, applied by every council to overdue rates instalments.
Concessions
Eligible pensioners can receive a rebate (up to $250/year on ordinary rates & domestic waste, plus separate water/sewer rebates)Check eligibility with the council; the NSW Government funds 55% of the rebate and councils the remaining 45%.

The rate peg and the SRV limit the council's total rates income, not each household's bill directly — how your individual rates change depends mostly on how your land value moved relative to other properties at the latest revaluation. Federation's approved special rate variation is unusually large for NSW in this cycle (only five of six councils that applied for a 2025–26 SRV were approved); we report the approved percentages and IPART's published reasoning without judging whether the increase is justified — see the sources below for the full detail and current dollar amounts.

Sources — check it yourself

Figures are current as at the dates shown and may change — always confirm with the linked source. See the notice at the bottom of the page for full details and how to report a correction.