New City of Perth ratepayers, such as those in Park Road, face a significantly smaller rate rise in 2016-17 compared to their former City of Subiaco neighbours, including those in Onslow Road.
CITY of Subiaco councillors will vote next month on a proposal to raise rates by 8.7 per cent in the 2016-17 budget to help reduce the effect of the City of Perth Act.
The City is set to lose $43 million over the next 10 years because of the Act, which comes into effect on July 1.
A 2.4 per cent rise is already forecast in the budget, with an additional 6.2 per cent rise proposed to cover a revenue shortfall caused by the transition.
Councillors met on Tuesday to discuss the rate rise but opted to defer the decision.
Local Government Minister Tony Simpson said he did not see a link between this year’s 8 per cent proposed increase and the City of Perth Act.
“According to the State Government’s MyCouncil website, the City of Subiaco’s total rates revenue has increased on average by 8 per cent annually over the past three years to $21.6 million in 2014-15,” he said.
“Ratepayers may also be feeling the pinch with a 12 per cent increase in fees and charges, including parking fees and fines. Considering these year-on-year increases, I fail to see the link between this year’s 8 per cent proposed increase and the City of Perth Act.”
However, City of Subiaco chief executive Don Burnett said Mr Simpson’s comments were incorrect.
“The information on the MyCouncil page about the City of Subiaco may show an average rate increase over the past three years of 8 per cent, however this is not the actual rate increase passed on to ratepayers,” he said.
“For Subiaco, the actual rate increase for 2013-14 was 6.25 per cent, 2014-15 5.5 per cent and 2015-16 2.96 per cent, giving the average rate increase to ratepayers of 4.9 per cent for the past three years.”