WA Local Government Association President, Cr Bill Mitchell said analysis found 40% of the rates increase for a representative Perth household would go directly to State Government departments and agencies.

The rates bill for is expected to increase by an average $115 of which the State Government would receive at least $24 from increases to the landfill levies (up to $48 for some households); $15 in increased street lighting electricity charges; and $7 in emergency services fees.

“It is important that when the community receives their rates renewal notices that they understand that a big proportion of the increases this year are new or increased State Government charges,” Cr Mitchell said.

“Having to collect these charges for the State Government puts Local Governments in a difficult position with their communities in that they are often blamed for the increases.”

Cr Mitchell said most Councils were still finalising their budgets however information provided to WALGA forecast increased Local Government costs would be between $45 and $90 for the average Perth household.

He said a combination of factors were responsible for the increase to the Local Government portion of rates which would be on average between 4% and 8% this year.

“Employee costs make up a significant portion of Local Government costs so even a small wage growth of about 3% will account for almost half of the rates increases,” Cr Mitchell said.

“A further 20% of the increase will be a consequence of lower earnings from banks on funds Local Government have set aside for major projects and long term liabilities.

“Add to that, rates will also need to cover the shortfall in revenue as a consequence of the current lower return on recycled goods and that Federal Government funding expected to be only be increased by 2.5%.”

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