BY JESSICA ROUSE
The Independent Pricing and Regulatory Tribunal (IPART) is seeking community feedback on special rate variations that explicitly impact Muswellbrook and Cessnock local government areas.
Muswellbrook Shire Council’s application is to increase rates specifically for the mining rate category of the Shire – something the mining sector are in agreeance should not happen.
Meanwhile residents in Cessnock are facing an almost 40 per cent rate hike across the area impacting businesses and residential property owners alike.
Muswellbrook Council announced the plan last year to slug the mine rate payers of the Shire an increase of 49.7 per cent to the rate category compared to 3.1 per cent for every other category.
All five of the mining companies within Muswellbrook Shire – BHP, MACH Energy, Malabar Resources, Mangoola Coal Operations and Bengalla Mining Company all put forward a submission to Council and all expressed concern about the “scale, equity and justification of the proposed increases”.
In the summarised report of the submissions, each company noted their reasons for objecting to the proposal.
For Malabar Resources, currently about to mine their first coal from their long wall at Maxwell Underground mine, noted the SRV would result in a 750 per cent cumulative rate increase for them since 2018.
They added mining’s share of total rates would rise from 34 per cent to 63 per cent by 2026-27 and that this increase “is inequitable, threatens investment certainty, and risks employment impacts”.
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.
Muswellbrook Shire Council said last year the proposal came in a bid to safeguard essential services and prepare the community for the closure of the mine sites which would result in a huge reduction in rates being paid for essential services.
“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,” Mayor Drayton said.
Meanwhile the increase in rates at Cessnock has caused quite a stir with a community march held on Wednesday to demonstrate the widespread community objection.
IPART will consider the submissions from those supporting and objecting to the special rate variations and will release their final decision by June 2026. You can make your submission at: www.ipart.nsw.gov.au
