How is the rate peg determined?
A standing committee comprising representatives of the Division of Local Government, Department of Premier and Cabinet and NSW Treasury advises the Minister each year on the maximum rate pegging increase that should apply generally in the following year. The rate peg is calculated by the Committee by looking closely at the projected annual increase in costs that would be incurred by a typical council delivering services at levels comparable to the previous year. The estimated increase in costs is based on actual changes and a forecast of increases which is provided by NSW Treasury. The forecast of increases provided by NSW Treasury is broken up into two components the Wage Price Index and the Sydney Consumer Price Index. The Wage Price Index is an estimate of the increase that salaries and wages will increase over the coming year. The second component is the Sydney Consumer Price Index. It is an estimate of what NSW Treasury anticipates the rise will be for operating expenses for an av
