Muswellbrook Shire Council has welcomed today’s decision by the Independent Pricing and Regulatory Tribunal (IPART) to grant Council a Special Rate Variation (SRV) of 25.9% to be applied exclusively to the mining rate category. This is a significant step forward in protecting our community from the long term financial impacts of mine closures.
Coal mining has long been the foundation of Muswellbrook and Council is determined to protect the community from the impact of closures as our economy changes. The Council currently raises approximately 56% of its rate revenue from mining operations. Without this action, mine closures threaten a $5 million annual revenue loss in the near term, ballooning to $18 million by 2044–45.
Today’s decision is the result of careful planning and hard work by Council on behalf of every resident in our Shire. Council’s application to IPART is one of the first of its kind; Muswellbrook is again leading the way, planning for the future and putting the needs of our community first.
This permanent increase represents an average 49% rise for mining assessments (25.9 per cent SRV plus the 3.1 per cent rate peg). It will generate approximately $6 million in additional revenue for the Shire in 2026–27. These funds will be directly invested into:
- Productivity improvements – to optimise Council’s operations and be more customer focused to align with community expectations.
- Economic activities – bringing new industry, jobs, and investment to the Shire.
- Future Fund – further investment in Council’s existing Future Fund to provide alternative income streams to offset the loss of mining rates.
Mayor Jeff Drayton said today’s decision is proof of Council’s ongoing commitment to getting ahead of the challenge – not waiting for it to arrive.
“We have been working hard behind the scenes to make sure our community does not carry the financial burden of mine closures,” Mayor Drayton said.
“Council is in a strong financial position but with coal mines starting to close in 2030 this decision means we can continue to provide the level of service our community expects. More importantly, it allows us to invest in economic diversification — attracting new industries and sustaining jobs for the long term.”
“Coal has been the backbone of our community for generations and will remain part of who we are. But we owe it to our community to plan for what comes next – and that’s exactly what we are doing.”
Council’s long term financial modelling clearly shows the impact mine closures will have on Council’s rate revenue. We are not reacting to a crisis or a current financial issue; we are planning ahead to protect the Shire from a period of uncertainty and economic transition.
Council will continue working closely with industry and our community, committed to ensuring Muswellbrook Shire remains a great place to live, work and invest for generations to come. This is an important milestone, but Council remains focused on the work ahead for our residents and our region.
Supplied – Muswellbrook Shire Council
