The Independent Pricing and Regulatory Tribunal (IPART) is calling for community feedback on special rate variations affecting Muswellbrook and Cessnock – two proposals that land very differently, but both put rates affordability and justification under the microscope.
In Muswellbrook, Council has applied to lift rates for the mining rate category only, a move the mining sector does not support. Council flagged the proposal last year, setting out an increase of 49.7 per cent for mining ratepayers compared with 3.1 per cent for every other category.
All five mining companies operating in Muswellbrook Shire, BHP, MACH Energy, Malabar Resources, Mangoola Coal Operations and Bengalla Mining Company, made submissions to Council opposing the proposal and calling for a more collaborative approach.
Malabar Resources, preparing to mine first coal from its longwall at Maxwell Underground, said the SRV would result in a 750 per cent cumulative rate increase for the company since 2018. Malabar also said mining’s share of total rates would rise from 34 per cent to 63 per cent by 2026–27 and described the increase as inequitable, warning it could affect investment certainty and have employment impacts.
BHP argued the proposed mining-only increase is disproportionate and poorly justified. It said the timing also matters given Mt Arthur is working through a planned closure pathway, and emphasised its broader contribution to the region through jobs, spending and community investment.
MACH Energy said it doesn’t support the size of the uplift on mining. It argued Council’s future rates base depends on ongoing approvals and investment, and warns that sharp, mining-specific increases add uncertainty that can work against both the operation and the Shire’s long-term revenue.
Mangoola objected to a permanent, step-change increase applied only to mining. It said the “need” case and assumptions need stronger evidence and modelling, and recommended alternatives such as tighter justification, mitigation measures, or a more staged approach.
Bengalla said it understands Council’s financial pressures but does not support a mining-only rise of this scale. It points to the mine’s local employment and procurement contribution and calls for a more collaborative solution that supports transition without a sharp, targeted impost.
All five of the mining companies noted the exponential rise – for Bengalla from $3.44 million to $5.56 million – the risk to operations and supplier certainty and recommended a more collaborative approach for the consultation.
Council, however, has framed the proposal as a way to safeguard essential services and prepare the community for mine closures that would reduce rates revenue.
“We know what’s coming and we know if we do nothing, our Shire will decline and residents will ultimately pay the price for mine closures. Acting now lets us protect essential services while keeping our community affordable,” said Muswellbrook Mayor Jeff Drayton.
“We’ve always backed mining in Muswellbrook, and we’ll continue to do so, but we owe it to our residents to plan ahead and put their interests first.”
Muswellbrook isn’t the only Hunter LGA with an SRV before IPART. Cessnock City Council is also seeking a special variation that would lift rates by almost 40 per cent across the area, impacting households and businesses. The scale of the proposed increase has prompted strong public opposition, including a community march in late February.
That’s where IPART comes in. Its role is to test whether the proposals are justified and supported by evidence. IPART can approve, partially approve or reject the applications and it will make that call after weighing up all submissions. So now is the time to have your say.
| Submissions to IPART close on March 9, with final determinations due by June 2026. Head to: www.ipart.nsw.gov.au |
