Snowy Valleys Council proposes rate rises for demerger

Snowy Valleys Council has released a revised financial plan seeking community feedback regarding the proposed demerger into two separate councils. The split, which would recreate the former Tumut and Tumbarumba shire areas, is currently scheduled for 1 July 2028, pending ministerial approval.

To secure approval, the council must prove that both new entities can remain financially sustainable over a 10-year period. Financial modelling suggests that without changes to revenue or spending, both proposed councils would face ongoing operating deficits.

The council identified a scenario involving rate increases, reduced spending on materials and services, and adjustments to fees and charges as the only path to sustainability. Under this model, the northern council (Tumut area) would require a special rate variation of 4.3 per cent annually above the ordinary rate peg, while the southern council (Tumbarumba area) would require a 9.5 per cent annual increase due to its smaller rate base.