An assessment of rate-pegging in New South Wales local government

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Brian Dollery
Albert Wijeweera


Rate-pegging has been in place in NSW for more than thirty years with broad support from all sides of politics. However, in late 2008 the NSW Government commissioned IPART to report on the adequacy of rate-pegging. IPART produced a Draft Report and then a Final Report, which has not yet been released by the NSW Government. Nevertheless, the NSW Government has made some changes to local government finance by way of capping developer charges, allowing IPART to make annual rate-pegging determinations, and enabling IPART to consider special variations in rate-pegging. Against this background, this paper considers the principles and practice of rate-pegging in NSW, the rationale for rate-pegging and counter-arguments on its desirability, as well as its economic effects on NSW local government finance relative to other Australian local government jurisdictions.

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How to Cite
Dollery, B., & Wijeweera, A. (1). An assessment of rate-pegging in New South Wales local government. Commonwealth Journal of Local Governance, (6), 56-76.
Research and Evaluation (peer-reviewed)
Author Biographies

Brian Dollery, University of New England

Brian Dollery is Professor of Economics and Director of the Centre for Local Government at the University of New England. Brian is the leading Australian authority on the economics of local government. He has written extensively in applied economics, especially local government, publishing more than 300 articles in scholarly journals as well as 13 books. Recent books include Local Government Reform: A Comparative Analysis of Advanced Anglo-American Countries (2008), The Theory and Practice of Local Government Reform (2008), Reform and Leadership in the Public Sector (2007) and Australian Local Government Economics (2006).

Albert Wijeweera, Petroleum Institute, Abu Dhabi

Dr Albert Wijeweera is Associate Professor of Economics in the Department of Arts & Sciences, The Petroleum Institute. Dr Wijeweera's research output covers a broad spectrum of subject areas and a wide range of activities; from journal publication to conferences and to theses supervision. Recent articles appear in the following: Applied Financial Economics, Applied Economics, Global Economy Journal, Journal of Developing Areas, Global Economic Review, Applied Economics Letters, and Defense and Peace Economics. Research interests include International Finance, Local Public Finance, Taxation and FDI, and Military Spending and Growth