Special rate variation (SRV)

Your rates and the special rate variation explained

Ku-ring-gai Council implemented a Special Rate Variation on 1 July 2026 following approval from the Independent Pricing & Regulatory Tribunal (IPART). 

This web page explains what changes you will see in your rates and how they are calculated. 

Council rates increases are set annually by IPART for each Council in NSW based on a methodology called the rate peg.  

More information on the rate peg can be found here

For further increases above the rate peg, councils need to apply and obtain approval from IPART. This is called a Special Rate Variation (or SRV). 

SRVs are sought by councils to meet shortfalls in income for essential services, infrastructure or facilities. In Ku-ring-gai’s case, the SRV will be used exclusively for upgrades to local infrastructure such as footpaths, parks, drainage and community buildings. A part of it will also be used to pay down the loan for the St Ives Indoor Sports Centre.

Understanding how rates are calculated for your property

In simple terms, this is the formula used to calculate your rates for the 2026-2027 financial year:

• Council looks at how much money it collected from everyone last year and adds it all together to create a total combined pool.
• The rate peg is applied to that total pool and increased by 4.4%, and a further 24.6% is added to that total as the SRV. This creates the total rates income Council will collect for the year.

Council then calculates how much each ratepayer pays from the total pool. In short, the total rate base is divided up between ratepayers based on how valuable their land is and the adopted rating structure. To do this fairly, we use the value of everyone’s land to work out each person’s share.

Please note: The 29% increase applies to Council’s total collective rate income, not to individual property bills. Council divides that total pool up between ratepayers and so your actual change for 2026-2027 may be higher or lower than the 29% average.

Other factors driving your individual rate calculation

Land valuations

All land values are checked every three years by the NSW Valuer General. Properties in Ku-ring-gai were revalued by the Valuer General as of 1 July 2025 and these new figures are being used to calculate rates for 2026-2027.

If your land value increased more than the Ku-ring-gai average, your share of the total rate pool will increase. 

Ordinary Rates and Special Rates

Council’s total rates revenue is divided into an Ordinary Rate and Special Rates:

• The Ordinary Rate is calculated on an ad valorem (variable / proportional) basis in accordance with your property's land value. The Ordinary Rate is subject to a minimum amount. 
• Council also levies a number of specific Special Rates, including the Environmental Special Rate, the Infrastructure Primary Rate and the Infrastructure Special Rate (Local Roads). These are calculated partly on an ad valorem basis and partly via a fixed base amount.

Note that Special Rates are not necessarily a result of an SRV. An SRV can be applied to Ordinary Rates, Special Rates or both.

Minimum rate threshold for Ordinary Rates

The Ordinary Rate is subject to a minimum rates threshold. This applies when residential properties have a land value below $1,242,103, meaning they do not pay the variable ad valorem land value rate.

Instead of a variable land calculation, these properties are automatically charged a fixed minimum rate of $698 for the 2026-2027 financial year.

Base rates and balancing the rate share

Properties on individual blocks of land typically have much higher land values than strata properties where the land value is shared among all units in the development. If Council rates were calculated purely on the ad valorem amount, higher-value properties would pay significantly more than lower-value properties compared to the current rating structure.

To distribute the rating share more evenly, Council uses two main mechanisms:  

• The Ordinary Rate Minimum, as outlined above, helps spread the rates more evenly by ensuring a baseline contribution for lower-value properties
• Council applies base amounts to a number of its Special Rates. A portion of these rates is paid equally by all properties as a flat base amount, while the remaining component is calculated on an ad valorem basis.

Together, these measures help to minimise extreme variations in the total rates paid between higher and lower-value properties.

Reporting on how your rates are spent

The new rates are reflected in the 2026/27 Delivery Program and Operational Plan. Council will publish regular plans and updates on how the funds are being allocated and spent. 

Summary of projected SRV expenditure plan in 2026-27

Capital expenditure (asset renewals)

• Council Buildings - $6.7m
• Parks & Recreation - $1.9m
• Footpaths - $940,000
• Stormwater - $5.9m

Capital expenditure (new assets)

• Footpaths - $2.1m
• Traffic facility upgrades - $1.7m

Other uses

Repayment of loan for St Ives Indoor Sports Centre - $1.46m

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