Funding Urban Australia - The role and rate revenue of Local Government in New South Wales

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Conference Proceeding
State of Australian Cities (SOAC) Conference, 2007, pp. 1 - 10
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Local government in New South Wales is charged with the co-responsibility of maintaining core community services and infrastructure including, health, housing and roads among other assets. The services provided by local government are funded from a variety of financial and revenue sources of which the primary source is the rating of land. This paper reviews the evolving role of local government and considers the present practice and framework for raising revenue through the rating of land. Intergovernmental cost shifting has increased the financial burden on local government which has led to an unaccounted cost of present and future capital depreciation of local government infrastructure in NSW. A case study of local government revenue and expense has been used to quantify this unaccounted cost. A juxtaposition of pre and post 1993 methods prescribed under the Local Government Act is made to demonstrate the limitations of rate revenue which is impacted on by rate pegging imposed by State Government.
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