Revenue Policy
2026 / 2027
Acknowledgement
We acknowledge the Bundjalung, Gumbaynggirr and Yaegl people as the Traditional Owners of the land on which we live and work. We honour the First Nations peoples culture and connection to the land, sea and community. We pay our respect to their Elders past, present and emerging.
Proposed Borrowings
General Fund
The general fund borrowed $24.72 million during 2023/2024 over a term of 15 years as part of the funding strategy for investing in the upgrade of the Regional Aquatic Centre and the Yamba Community Centre. Works on these projects were completed in 2025/2026. There are no further proposed loan borrowings between 2026/2027 and 2035/2036. All loans will be repaid in full by 30 June 2039.
Water Fund
Water fund is proposing to borrow $20 million during 2026/2027, and a further $30 million in 2027/2028, as part of the funding strategy for future water infrastructure network improvements. All loans will be repaid in full by 30 June 2047.
Sewer Fund
Sewer fund is proposing to borrow $26 million during 2026/2027 as part of the funding strategy for future sewer infrastructure network improvements. All loans will be repaid in full by 30 June 2046.
Long Term Financial Plan
Loan Repayments (Principal and Interest) by Fund from 2026/2027 to 2035/2036:
Valuations
Rates are calculated on the land value of a property, multiplied by a ‘rate in the dollar’. The land value is determined by the NSW Valuer General who issues a Notice of Valuation at least every three years The Valuation of Land Act 1916 requires that Council assess rates using the most recent values provided for the 2026/2027 rating year, the valuation base date will be 1 July 2025.
Interest Rate
In accordance with Section 566(3) of the Local Government Act 1993, it has been determined that the maximum rate of interest payable on overdue rates and charges for the period 1 July 2026 to 30 June 2027 will be 9.5%. This rate is 1% reduction from the 2025/2026 rate of 10.5%.
2026/2027 Rate Peg
The rate peg is the maximum percentage Councils can increase their income from ordinary rates. Revenue from rates represents one of the main sources of income for Councils in NSW. The rate peg protects ratepayers from excessive rate increases, while ensuring Councils receive a fair amount of income from rates which enables them to provide quality services for their communities.
The Independent Pricing and Regulatory Tribunal (IPART) have determined that Council’s general ordinary rate income may be increased by 4.3% in accordance with Sections 506 of the Local Government Act 1993 for the rating year commencing 1 July 2026.
2026/2027 Rate Levy
Our rate levy is broken into the following 6 categories. Maps showing the boundary of each of these rate levy categories is attached, refer Appendix A.
Residential A – Angourie, Brooms head, Diggers Camp, Iluka, Sandon River, Minnie Water, Wooloweyah and Wooli
Business B – Maclean/Townsend
Business C – Iluka
Business D – Yamba
Business E – Grafton and South Grafton CBD
Business F – Grafton and South Grafton Other
Pensioners
In accordance with Section 575 of the Local Government Act 1993, ratepayers that hold a current Pensioner Concession Card may be eligible to receive a rebate on rates for a property that is their sole or principal place of residence. The rebate varies from one property to another and will be calculated at the time the application is made.
The rebate for a full year from 1 July to 30 June will be based on 50% of the residential rate levy to a maximum of $250, 50% of the water levy to a maximum of $87.50 and 50% of the sewerage levy to a maximum of $87.50. Where 50% of the water levy is less than $87.50 in one year, the remaining pension entitlement will be applied to the water consumption account until the maximum of $87.50 has been granted.
Pro rata rebates are available and will be calculated for each full quarter following the quarter in which the pensioner becomes eligible.
Rate Structure
The Rate Levy tabled on the next page is a summary of the recommended Rate Structure for 2026/2027, which includes an increase of 4.3% to the general income as originally determined by The Independent Pricing and Regulatory Tribunal (IPART) under section 506 of the Local Government Act. The number of properties, total yield and rates in the dollar have been updated to reflect the most recent land valuation/ property adjustments as supplied by the Valuer Generals Department.
The rate structure for 2026/2027 also contains the following:
• Yamba, Maclean and Townsend Residential Categories Base Amount increases from $568 to $593
• All Business Rating Categories Base Amount increases from $568 to $593
• Residential – “Outside Town Areas” and Residential A – “Coastal Villages” Minimum increases from $760 to $793
• Farmland Category as a Base Amount increases from $370 to $386
• Jetties Category will be charged a minimum rate of $73
Residential – Ashby, Chatsworth, Copmanhurst, Brushgrove, Gulmarrad, Harwood, Ilarwill, Lawrence, Palmers Island, Coutts Crossing, Woombah, Cowper, Glenreagh, Swan Creek, Tucabia, Ulmarra, Waterview, Seelands, Eatonsville, Illarwill, Tyndale plus rural residential areas This includes residential flood prone land (9 properties)
Residential A – Angourie, Brooms Head, Diggers Camp, Iluka, Sandon River, Minnie Water, Wooloweyah, Wooli
Water Charges
Council’s water charging structure is made up of two components, a fixed annual access charge levied on properties with access to the water supply and a usage charge based on the volume of water consumed.
Water Access Charge – Annual Charges (Section 501 LGA)
Fixed water access charges for both Residential and Non-Residential properties are charged depending on water meter connection size and the number of services connected to the property.
To properly reflect the load a water connection can place on the system, annual access charges are proportional to the square of the size of the customer’s water supply service.
An annual water access charge will apply to all properties (including strata titled lots and vacant land) that are able to connect and are within 225 metres of Council’s water mains.
Vacant land which does not have a water meter connected will be charged the unconnected charge.
Council will not levy a water access charge for standalone fire service water meters unless the service is consuming water for anything other than firefighting or testing purposes.
For properties that have a master water meter connection and council owned individual water meters downstream of the master meter, access charges will be levied based on the sizes of the connected downstream meters The master meter will not attract an access charge.
Council will provide a water allowance for customers requiring home dialysis treatment that may require additional water consumption by the resident and as advised by the Northern New South Wales Local Health District, with the allowance provided on a tri- annual basis.
A high consumption charge will apply to non-residential properties with development approval issued after 1 July 2021. This charge effectively recovers the capital investment council has made in providing water infrastructure. The methodology decreases or eliminates the requirement to pay a developer charge which is associated only with a specific location. The charge is calculated by amortising the Section 64 Developer Charge for water over 40 years, with a cost of capital estimate of 5% and forecast escalation of developer charges by 2.5%, divided by 230kl/year.
Water Usage Charge – Annual Charges (Section 502 LGA)
A volumetric water usage charge will be levied based on the water usage recorded as passing through the water meter/s servicing each property Water meters are read and billed on a tri-annual basis.
Council has an inclining block tariff charge to encourage water conservation. A higher water consumption charge is applied after the adopted kiloliters per day (kl/day) amount is exceeded, which is the same daily consumption as used for the inclining block tariff and the water nonresidential high consumption. The adopted kiloliters per day will be reduced from the current 1.233kl/day to 1kl/day. The reduction is to realign the inclining block tariff to be approximately 2.5 times the average annual residential consumption and align with our Regional Water Supply partner, Coffs Harbour City Council.
The charges for 2026/2027 are shown in Table 1 where an increase of 10% has been applied to the standard consumption charge.
Fire Service consumption - water usage registered on fire service meter that was not for the purpose of the fire service, charged per kl (at 4 times the above standard consumption charge)
Non-residential High Consumption Charge (for developments that were approved after 01 July 2021) for average daily water consumption above 1kl/day per billing period (as per calculation methodology listed in the water annual charges section above)
Table 1: 2026/2027 Water Consumption Charges
(Access) Water Charge is charged using each residential and non-residential customer’s actual meter and is known as a “pure meter” based approach
All customers pay based on their meter size Meters greater than 20mm are scaled up using the follow formula: Service availability charge (meter size in mm)2 x charge for a 20mm
Table 2: Fixed (Access) Water Charges for 2026/2027
*The access charge for meter sizes greater than 20mm is calculated on the square of the meter size compared with a 20mm meter.
Untreated water consumers supplied direct from trunk mains prior to treatment are charged at half of the above access charges Council does not approve any additional untreated water connections.
NSW Department of Climate Change Energy Environment and Water (DCCEEW) requires a single charge for both residential and non-residential consumers Charges for 2026/2027 will be in accordance with Table 3.
Table 3: Proposed consumption charge for 2026/2027
Sewerage Charges
Council’s sewer pricing structure for residential, non- residential and properties exempt from Ordinary Rates is outlined on the following page.
An annual Sewer Residential Connected Charge applies to all properties (including strata titled lots) that are connected to the Council’s sewer main.
Residential properties are charged the annual Sewer Residential Connected Charge per connection or separate occupation, within the Sewerage Access area and connected to the sewer. In respect of Residential Flat Buildings or properties under separate occupation, the Sewer Residential Connected Charge will be equal to the number of residential flats or separate occupation multiplied by the Sewer Residential Connected Charge for a single connection.
Properties within a pressure sewer zone are charged $35 less than properties in a gravity sewer zone to reflect the average estimated cost of pressure pump electricity consumption which is paid for by the property. This benefit has increased from $25 in 2024/2025 to reflect increased power costs. This charge is to be known as the Sewer Residential Connected Pressure System charge.
The non-residential sewer charge is the sum of the access charge and the generation charge, with a minimum charge of the residential charge ($1,606 for 2026/2027). As meters are read three times per year, the minimum non-residential charge will be calculated at an equivalent charge of $4.40 per day.
Properties exempt from Ordinary Rates in accordance with the Local Government Act are charged the Non- Rateable Sewer Connection Charge per connection or separate occupation, within the Sewerage Access area and connected to the sewer. In respect of Residential Flat Buildings or properties under separate occupation, the Non-Rateable Sewer Connection Charge will be equal to the number of residential flats or separate occupation multiplied by the Non-Rateable Sewer Connection Charge for a single connection.
Vacant land with no connection to Council’s sewer main but within 75 metres of Council’s sewer main and able to connect in the future, will be charged the Residential Sewer Availability Charge.
There is no fixed sewer access charge on standalone fire services.
Table 1 below shows the 2026/2027 sewerage charges and Table 2 shows the 2026/2027 access charge for non-residential properties where an increase of 10% has been applied.
Table 1: Sewer Charges for 2026/2027
exempt from Rating under Sec 556 Sewerage
exempt from Rating under Sec 556 Sewer Connection Charge (per connection or separate occupation)
Non-residential High Consumption Sewerage Generation Charge (for development approved after 1 July 2021) for sewerage generation above 0.60kl/day4 per billing period – and connected to Clarenza, North Grafton and Coutts Crossing sewerage treatment plants
Non-residential High Consumption Sewerage Generation (for development approved after 1 July 2021) for sewerage generation above 0.60kl/day4 per billing period – and connected to Woodford Island, Yamba and Iluka sewerage treatment plants
1. Properties within a pressure sewer zone are charged $35 less than properties in a gravity sewer zone to reflect the estimated average cost of pressure pump electricity consumption, which is paid for by the property.
2. The non-residential sewer charge is the sum of the access charge and the generation charge, with a minimum charge of the residential charge ($1,460 for 2025/2026). As meters are read three times per year, the minimum non-residential charge will be calculated at an equivalent charge of $4.40 per day.
3. Residential properties are charged the Sewer Residential Connected Charge per connection or separate occupation, within the Sewerage Access area and connected to the sewer. In respect of Residential Flat Buildings or properties under separate occupation, the sewer residential connected charge will be equal to the number of residential flats or separate occupation multiplied by the Sewer Residential Connected Charge for a single connection. •
4. The non-residential sewage charge is based on an estimate that 60% of water consumption is directed to the sewer. The non-residential sewer high consumption charge therefore applies for non-residential sewage generation calculated as 60% of 1kL/day, which is 0.60kL/day.
*The access charge for meter sizes greater than 20mm is calculated on the square of the meter size compared with a 20mm meter Liquid trade waste fees and charges are shown in the fees and charges section.
Waste Management Charges
The Domestic Waste Management (DWM) charge must be determined each year pursuant to Section 496 of the Local Government Act, 1993. This charge is audited by Council’s external auditors to ensure that the rate is reasonable and that the cost of collecting and processing domestic waste throughout the Council area is relative to the charge for providing the service. Council resolved at its meeting held on the 23 August 2022 to accept a tender from JR Richards and Sons to provide domestic waste collection and waste processing services for the next 10 years.At the Council meeting held on the 28 March 2023, it was resolved to commence a new bulky waste collection model from 1 July 2023 that aligned with the new 10-year Domestic Waste Management Contract.
Council levies a waste management charge pursuant to Section 501 of the Local Government Act 1993 on all rateable properties. The levy contributes to the cost of servicing waste management operations such as waste transfer stations, landfills, composting facilities, recycling centres and other services such as litter collection The 2026/2027 levy has increased from $75 to $78.
On-Site Sewage Management Systems
As the designated regulatory authority under the Local Government Act 1993, Clarence Valley Council is responsible for overseeing the regulation, monitoring, and management of On-Site Sewage Management Systems (OSMS) to ensure they meet environmental and public health standards.
Council’s monitoring program, established under the On-Site Wastewater Management Strategy 2025, aims to enhance the ongoing operation of OSMS through programmed and targeted inspections and public education. This strategic framework significantly mitigates risks associated with failing or unauthorised systems, thereby safeguarding the natural environment and community wellbeing.
All OSMS within the LGA are assigned a risk category classification, which serves as the basis for setting inspection priorities and ensuring efficient resource allocation. A OSMS classification is determined by the highest risk rating it meets across various environmental and operational criteria including soil type, proximity to sensitive environments and watercourses, property size, and system age.
The below tiered charge structure reflects the costs associated with administering compliance for each risk category. Section 501 of the Local Government Act 1993 allows for an annual charge to be applied on rateable land for waste management services such as OSMS.
Backflow Prevention Device Annual Charge
The annual charge to fund the administration of the backflow prevention device program including the auditing of the backflow devices has been indexed by 10% from $76 (2025/2026) to $84 (2026/2027). The charge is levied on properties that have containment backflow prevention devices that are required to be annually tested and certified in accordance with Council’s Backflow Prevention and Cross Connection Control Policy. The charge known as “Non-Residential Backflow Prevention Device” Charge, is per annum and per containment device. There are currently 166 Backflow Prevention Devices to administer.
Stormwater Annual Charge
In accordance with Section 496A of the Local Government Act 1993 and regulation 125A of the Local Government (General) Regulation 2005 (LGR) Council will levy a Stormwater Management Service Charge against rateable properties for which the service is available. Council has identified the residential and business properties that are within Council’s urban stormwater catchment areas that will be subject to this charge. The Stormwater Management Service Charge will not apply in any areas which have a special drainage rate or charge levied under Section 552(4) of the Local Government Act 1993.
The following charging methodology will be used by Council using the guidelines released by the Office of Local Government as well as considering Section 510A of the Local Government Act 1993 and regulation 125AA of the LGR.
The guidelines provide Council with the opportunity to levy charges on a catchment area or global basis, while ensuring that the total income generated does not exceed the level of expenditure for new and additional stormwater management services.
Council has a stormwater capital works program and as a result, a global approach will be used to enable significant works to be funded at a given time using all revenue levied, rather than waiting to collect enough funds in individual catchments. In accordance with these guidelines, Council still needs to ensure equitable distribution of stormwater management services over time.
Eligible Properties categorised as Residential (Not being Strata Titled) – LGR 125AA (1)(a)
A flat charge of $25 for a “Stormwater Management Charge – Residential” is to be charged against each eligible assessment categorised as Residential within the urban stormwater catchment. This charge is uniform across all urban catchment areas to minimize administration costs.
Eligible Properties categorised as Residential (Strata Units) – LGR 125AA (1)(c)
The cost of managing stormwater runoff from impervious surfaces is usually substantially less per residential strata lot than per standard residential property It is for this reason that a flat charge of $12.50 for a “Stormwater Management Charge – Strata Unit” is to be levied against each eligible residential strata unit within the urban stormwater catchment. This charge is uniform across all urban catchment areas to minimize administration costs.
Eligible Properties categorised as Business (Not being Strata Titled) – LGR 125AA (1)(c)
A “Stormwater Management Charge – Business” is to be charged against each eligible assessment (not being strata titled) and categorised as business, within the urban stormwater catchment area. This charge is based on the total impervious area of the property. A charge of $25 for each 350 square metres of impervious land or part thereof will be levied up to a maximum of $500. The criteria for charging business properties by using property impervious areas had been recommended using the guidelines provided by the Office of Local Government.
Eligible Properties categorised as Business (Strata Units) – LGR 125AA (1)(d)
A Stormwater Management Service Charge will be levied a $12.50 charge on each eligible business strata unit within the urban stormwater catchment area.
National Competition Policy –
Business Activities
In accordance with Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality Council has declared the following activities as business activities.
Category 1
(where gross operating turnover is over $2 million)
Clarence Valley Council Water Supply
• Provision of Water Supply Services
Clarence Valley Council Sewerage Services
• Provision of Sewerage Augmentation
• Reticulation and Treatment
Category 2
(where gross operating turnover is less than $2 million)
Council has no category 2 businesses
Fees and Charges for 2026/2027
Clause 201 of the Local Government (General) Regulation 2005 provides that Council’s Revenue Policy must include a statement of the types of fees proposed to be charged by Council, the amount of each fee, estimated yield and the proposed pricing methodology for each fee.
A schedule of Fees and Charges for 2026/2027 has been prepared and is available on Council’s website at www.clarence.nsw.gov.au Council’s schedule of Fees and Charges has 1,369 fees including 48 new fees and 454 discontinued fees.
Each fee or charge has been categorised as follows:
U - User Pays Council pricing reflects the nature of service and costs.
R - Regulatory The price is set by Council for a goods/service which Council has a regulatory right or obligation to provide.
S - Statutory The price charged for this goods/ service is a statutory charge set by government regulation.
Details of those fees and charges subject to GST and exempt from GST are identified in the schedule of Fees and Charges. The GST status of each charge/fee depends on whether there is consideration for a supply. Some fees and charges are exempt from GST in accordance with the Federal Treasurer’s Determination under Section 81-5 of the A New Tax System (GST) Act 1999 as amended, and as assessed under the Tax Laws Amendment (2011 Measures 2 No 2) Bill 2011: exempting taxes, fees and charges from the GST. Generally, where permissible, the majority of Council’s fees and charges have been increased by an estimated CPI amount of 4% and rounded. Some prices vary outside CPI based on specific issues impacting the operations, costs, or pricing parameters of the particular service. Regulatory or statutory fees will increase in line with government pronouncements.
The following pricing categories have been used in determining the fees, which are summarised below:
Full Cost Pricing - Fees are set to enable the recovery of all direct and indirect costs involved in the provision of a service.
Subsidised Pricing - Fees and charges are set at a level that recovers less than the full cost incurred in service delivery. In effect some level of subsidisation is factored into the price.
Market Pricing - Fees and charges are based on current market fee structures. The market price is usually determined by examining competitors’ prices and may have little relationship to the cost of providing the service.
Statutory Pricing - Fees and charges are set to comply with statutory legislation
Dynamic Pricing - Fees and charges are set to allow flexible pricing strategies for market influences such as demand and supply.
Sewer and Water Connection Fees
Sewer and water connection fees are calculated as outlined in Council’s Policy “Sewer and Water Capital Contribution Credits for Properties not paying availability charges as at 28 June 2005”.
This policy specifies that the connection fee for properties not paying sewer and/or water availability charges as at 28 June 2005 will include a capital component. The capital component for sewer is equivalent to the capital contribution for 1 sewer Equivalent Tenement (ET) and the capital component for a 20mm water meter is equivalent to the capital contribution for 1 water ET. The capital component for larger size water meters is based on an ET assessment of the meter capacity.
The sewer and water contributions for 1 ET were initially set in the Development Servicing Plans (DSP) for Sewer and Water adopted by Council on 28 June 2005, revised in June 2017, and in February 2026 Council adopted exhibition draft DPSs which are scheduled to be adopted in June 2026. Sewer and Water contribution for 1 ET are adjusted annually using the methodology specified in the Department of Primary Industries - Water Guidelines The sewer and water contributions for 1 ET are listed in the Fees and Charges as “Section 64 contributions”.
Hardship Ordinary Rates and Annual Charges Policies
The purpose of these policies is to establish guidelines for the General Manager and staff on providing appropriate assistance to ratepayers suffering financial difficulties with the payment of Ordinary Rates and Annual Charges in both normal times and in times of natural disaster and health pandemics.
The intent of these policies is to ensure that ratepayers facing financial hardship, but with the will to make payments against their Ordinary Rates and Charges, have a clear and simplified way of doing so. Where there is no willingness to make payments against outstanding Ordinary Rates and Annual Charges, the right of Council to take legal action is well-defined.
These policies recognise that ratepayers may at times encounter difficulty in the payment of rates and charges. The Local Government Act 1993 allows Council to provide assistance to those ratepayers. Application for hardship must be made on the appropriate form which is available from Council’s website www.clarence.nsw.gov.au
Financial Summary
1. 2026/2027 Budget and LongTerm Financial Plan
Assumptions and factors affecting the budget result have been incorporated into the 2026/2027 Budget and 2026/2027 to 2035/2036 Long Term Financial Plan (LTFP) are as follows:
Rates
The general rate revenue Rate Peg determined for 2026/2027 is 4.3% pa. It is then based upon the Reserve Bank Australia CPI forecast to be 3.5% from 2027/2028 onwards.
For the next 5 years (2026/2027 to 2029/2030), the estimated yield from the now built in SRV component of our rate base will be restricted and then subsequently used to improve infrastructure as per the SRV requirements. The estimated yield in 2026/2027 is $6.1 mil per the original SRV application. This built-in SRV is now referred to as the Infrastructure Renewal Value (IRV).
Revenue streams and future service requirements
Revenue streams and future service requirements will be adjusted for population growth forecasts where a direct relationship can be determined.
Population forecasts will be based upon the Forecast Id consultant’s population projections for the Clarence Valley (currently + 0.85% pa).
Operating Expenditure
From 2026/2027 onwards, recurrent operating expenditure will need to be indexed by at least 3% pa as in line with the average RBA forecast. The RBA November 2025 Monetary Policy Statement predicts a CPI of 3.7% at June 2026 subsequently dropping to 2.7% by June 2027 and then 2.6% by December 2027.
Operating Revenue
2026/2027 onwards will initially be increased in line with service deliverables and as evidenced through discussion with management. A general indexation rate of 4% pa will be applied on all general revenue streams where no other evidence is available to support a specific revenue increase.
Interest and investment income
Interest and investment income is forecast at a conservative average rate of 3.3% per year, based on the running yield of Council's investment portfolio (value average $160 million per month). It is then predicted to continue to drop to 3% in 2027/2028 and then settle around 2.5% from there onwards.
Water Charges
Water Charges will be indexed by 10% p.a. from 2026/2027 to 2028/2029 as impacted by recent changes to drinking water standards and to support large water infrastructure renewal projects. It is then anticipated that it can be reduced as follows:
• 4% from 2029/30 to 2033/2034
• 3.5% from 2035/36 to 2036/2037
• 3% from 2037/38 to 2044/2045
• 2% from 2045/46 onwards
Sewer Charges
Sewer Charges will be indexed by 10% p.a. in 2026/2027, as impacted by changes to the EPA requirements and related large future capital works projects. The charge will then be progressively reduced to 3.5% from 2027/2028 to 2029/2030, 3% until 2030/2031 and then 2% from 2031/2032 onwards.
Domestic Waste Management Charges
Domestic Waste Management Charges will be calculated based upon the reasonable cost requirements. The specific Domestic Waste Charge income funds the operating and maintenance costs associated with providing the service.
Operating Grants
Council has assumed it will continue to receive operating grants in relation to ongoing operations (where evidenced by management) and that these will generally increase annually in line with estimated indexation of 3%. Operating grants received for specific project related purposes have been included in the year Council anticipates they will be received.
Capital Grants
The capital grants applied in the model will be based on upon historical 5-year averages.
The Financial Assistance Grant
The Financial Assistance Grant value is estimated at $15.35m which is an increase of approximately 2.5%. This assumes the current prepayment arrangements will stand however reduced to 25% and then phrased out altogether over the following two years. The advance payments impact the Financial Statements as this income must be reflected when received, where the budget reflects the allocation for the actual year that it relates to.
Tax equivalent dividends
Tax equivalent dividends will be based upon the maximum allowable rate of $3 per assessment (which equates to approximately $75K from the Water Fund and $85K from the Sewer Fund). These figures will be adjusted by each estimated charge increases, and population increases.
Return on Capital
In addition to the tax equivalent dividend, Council can charge a Return on Capital invested from the Water and Sewer Fund if operating surpluses are achieved. Due to recent changes being imposed by the EPA, and the extent of future capital works required, no dividends are proposed for the next four years.
Organisational Structure
All positions on the adopted organisation structure are to be funded unless otherwise indicated.
Wage increases
Wage increases are forecast as per the 2023 to 2026 NSW Local Government State Award with a 3% increase forecast for 2026/2027, then forecasted at 2.5% each year from 2027/2028.
Leave Entitlements
Leave Entitlement accruals will be based upon the assumption that all positions in the organisation structure will be filled.
Workers Compensation
Workers Compensation premiums will be based upon 4.15% of the estimated wages from 2026/2027 onwards, which allows for the adjustment to the Basic Tariff for claims history. The historical Basic Tariff Premiums as a percent on wages is as follows:
• 2022/2023 = 2.37%
• 2023/2024 = 2.37%
• 2024/2025 = 3.14%
• 2025/2026 = 3.18%
Over the last three years claims performance history percentage continues to significantly increase, (calculated as the Claims Amount divided by the Basic Tariff). This has more than doubled from a percentage of 6.53% in 2022-23 to the current YTD of 14.52% in 2025/26. This will have an impact of higher premiums over the next three years, especially if this trend continues or worsens.
Council historically receives a Work, Health and Safety rebate, now called the Safety and Wellbeing Incentive. For 2026/2027 this is estimated to be $130,000.
Superannuation
Employees are generally in one of either two schemes being:
a. The Defined Benefits Scheme, which is calculated per employee elected contribution; or
b. The Super Guarantee Scheme (SG), whereby Council is legislatively required to contribute 12% of the employee's gross wages for 2026/2027. At this stage SG will remain fixed at this rate into the foreseeable future.
Electricity expenditure
Electricity expenditure varies by fund and historically has fluctuated from year to year. On that basis, an average amount for 2026/2027 has been determine which will then be indexed 5%.
Street lighting
Street lighting charges have historically fluctuated from year to year. Based on this, the forecast for 2025/2027 will be indexed by 3%.
Insurance
Council Insurers have indicated that the hard insurance market cycle has likely ended, recommending that council forecast 5% increases across all premiums.
State Emergency Levies
State Emergency Levies historically has fluctuated from year to year, excluding rebates that were provided in 2020/2021 and 2021/2022. On that basis contributions will be indexed by 3% p.a. for 2026/2027 onwards.
Rural Fire Contribution
The Rural Fire Contribution historically has been up and down from year to year excluding rebates that were provided in 2020/2021 and 2021/2022. On that basis contributions will be indexed at 3% p.a. from 2026/2027 onwards.
Surf Life Saving contributions
Surf Life Saving contributions to Minnie Water and Yamba have increased by CPI of 3%.
Surf Life Saving Contracts
Surf Life Saving Contracts have increased by 2.6% for 2026/2027, and then by 2.5% onwards.
Borrowing
No new General Fund loans are proposed for 2026/2027. New loans which will be required for Water Cycle infrastructure will be based upon an estimated interest rate of 6% over 20 years. The amount will depend on the success of current grant submission and the latest forecast construction costs, but it is anticipated that loan funding will be split over two years commencing in 2026/27. The projected new loan borrowings included in the budget and LTFP are $26m for Sewer Fund in 2026/27 and $20m in 2026/27 and $30m in 2027/28 for Water Fund.
Merchant Card Fees
The RBA has removed the ability to charge surcharges on debit, prepaid and credit cards on designated EFTPOS, Mastercard and Visa card networks, taking effect on 1 October 2026. Council will remove the charges in alignment with the ruling and estimates cost increases of $65k per annum. The cost to Council of providing these services remains until such time as the banks are instructed to remove the merchant change altogether.
*Whilst these assumptions provide a general guideline there are items in the budget that are predetermined, for example services that are subject to tender.
2. Best practice dividends from Water and Sewer Funds
Department of Climate Change, Energy, the Environment and Water’s ‘Regulatory and Assurance Framework’ for local water utilities provides that a dividend can be paid from water and sewer surpluses to General Fund provided the utility has in place effective, evidence-based strategic planning in accordance with sections 3 and 4 of the framework.
The criteria that must be satisfied for a dividend to be met are:
• Calculate any dividend payment in accordance with the methodology in section 42 of the framework.
• Be able to demonstrate there is a surplus.
• Demonstrate full cost-recovery pricing and developer charges.
• Have in place effective, evidence-based strategic planning in accordance with section 3 of the regulatory and assurance framework.
• Demonstrate financial reports are a true and accurate reflection of the business.
• Demonstrate that the overhead reallocation charge is a fair and reasonable cost.
To be eligible to make a dividend payment from a surplus, a local water utility must:
Demonstrate best-practice management compliance through an independent compliance audit report.
Obtain an unqualified financial audit report for its water supply and/or sewerage businesses.
Resolve in a council meeting open to the public that it has achieved “substantial compliance” with each criterion in the guidelines.
As per the Water Fund and Sewer Fund 2026/2027 to 2035/2036 Long Term Financial Plan’s, due to planned capital works programing and updated best practice compliance requirements, neither fund will meet the eligibility criteria in 2026/2027 and as such council is not intending to pay any best practice dividends from Water and Sewer Funds to General Fund in 2026/2027.