Upper Hunter Shire Council
Budget & finances

Budget & finances

Comparing raw dollar totals between councils isn't very useful — bigger councils naturally have bigger numbers. What does tell you about a council's financial health are normalised indicators: the standard ratios that every NSW council reports against the Office of Local Government's benchmarks, plus per-property figures you can compare to the NSW average. The ratios below are from the NSW Government's 'Your Council' / OLG time-series data for 2023–24.

New to these terms? Read them in plain English
Operating performance ratio
Whether everyday income covers everyday running costs.
Own-source operating revenue ratio
How much of the council's income it raises itself vs. grants from other governments.
Unrestricted current ratio
Whether the council has enough spare cash to pay its short-term bills.
Debt service cover ratio
How comfortably operating cash covers the council's loan repayments.
Rates & annual charges outstanding ratio
The share of rates bills that haven't been paid by year-end.
Cash expense cover ratio
How many months the council could keep paying bills if income stopped.
Infrastructure backlog ratio
The cost of fixing run-down assets, as a share of what those assets are worth.
Asset maintenance ratio
Whether the council actually spends what it should on maintaining its assets.
Building & infrastructure renewals ratio
Whether assets are being renewed as fast as they wear out.
Operating result (surplus / deficit)
Income minus expenses for the year's normal operations.
OLG benchmark
The healthy target set by the state for each financial ratio.
Average residential rate
The typical yearly general-rates bill for a home in the area.
Office of Local Government (OLG)
The NSW body overseeing councils; publishes the financial data.
See the full explainer, with formulas →
$927 / yearAbout 19% below the NSW council average of ~$1,140. In 2024–25 it was $968 (NSW ~$1,203) — still around 20% below the state average. (OLG time-series data.)
Operating deficit — performance ratio −24.8%Well below the >0% benchmark; a large deficit for this year. Financial sustainability is a live theme for the council (see the note below).
Liquidity & cash
Unrestricted current ratio 0.80× (misses >1.5×); 10.0 months cash; debt service cover 2.32× (passes)The unrestricted current ratio is below the >1.5× liquidity benchmark; cash cover and debt service cover pass.
Self-funding
Own-source revenue 44.3% (misses >60%)Below the benchmark, indicating a relatively high reliance on grants and contributions — common for large rural councils with a small population and a very large area.
11.2% (misses <10%)Just above the <10% benchmark that applies to rural councils (OLG group 11, Large Rural).
Infrastructure
Backlog 2.8% (misses <2%); renewals 138.4% (passes); maintenance 127.3% (passes)The council spent above 100% on both asset renewals and maintenance this year; only the backlog ratio misses.
Domestic waste charge (2023–24)
$664 / yearA separate annual charge that funds the bin service. The 2024–25 waste charge is not published in the OLG time-series file — check the council's fees for the current figure.
Indicator (2023–24)Upper HunterMeets?
−24.8%> 0%No
44.3%> 60%No
0.80×> 1.5×No
2.32×> 2×Yes
11.2%< 10%No
10.0 months> 3 monthsYes
2.8%< 2%No
127.3%> 100%Yes
138.4%> 100%Yes

Upper Hunter Shire's financial-health indicators, 2023–24, against the NSW Office of Local Government benchmarks. 'Meets?' simply states whether the figure is on the benchmark side of the line. Source: NSW Government 'Your Council' / OLG time-series data, 2023–24.

These ratios are the standard, size-independent way to read a council's finances, which is why we use them instead of raw dollar totals. Upper Hunter met 4 of the 9 benchmarks in 2023–24 — a weak year on this measure. The stand-out misses were a large operating deficit (−24.8%), low liquidity (unrestricted current ratio 0.80×) and own-source revenue of 44.3%; rates outstanding (11.2%) also just exceeded the <10% rural benchmark. Consistent with this, the council has said it needs to address a core deficit in its General Fund, and IPART approved a permanent Special Rate Variation of 10% a year for three years from 2025–26 (see 'Rates & fees'). The OLG's 2024–25 time-series shows the infrastructure ratios moving: backlog 2.2%, asset maintenance 185.4%, renewals 133.4%. Note the average residential rate is around 20% below the NSW average. We present the numbers and their benchmarks; whether that's good value is for you to judge from the sources below.

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.