General News
21 October, 2025
Council pledges rate cut after cap exceeded
The Hindmarsh Shire Council has pledged to reduce its total rates revenue in 2026/27 after identifying a minor breach of the 2025/26 rate cap.
This non-compliance was tabled at the Council meeting held on September 24, 2025, where Council resolved to "(acknowledge) the non-compliance with the 2025/2026 Rate Cap and (endorse) the proposed corrective action to proportionately decrease the total rates levied in 2026/2027 by the excess amount ($3,949 approximately) that is to be confirmed by the Essential Services Commission.”
Initial calculations estimate the figure to be about $3949, pending confirmation by the Essential Services Commission.
The rate cap for 2025/26 was set at three per cent, the maximum councils can increase general rates and municipal charges without seeking a variation.
An error in property valuation inputs resulted in Hindmarsh exceeding the cap by a slight margin, at 3.05 per cent.
Across the entire rate base, the excess equates to less than $1 per property.
Mayor Ron Ismay said that as soon as the council became aware of this error, they were committed to identifying a fair resolution for the community.
"While we continue to work through reviewing Council processes, we’re pleased to offer some assurance around how Council will resolve this in the next financial year," he said.
The council staff will continue working with the Essential Services Commission as it considers the non-compliance.
The corrective measure will be built into the 2026/27 budget, alongside a review of processes to prevent a repeat of the error.