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ABC News
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National

South Australian councils prepare to increase rates despite household cost-of-living pressures

Council rates are set to increase in most areas from July. (ABC News)

Households are bracing for another cost-of-living hit with local councils looking at significant hikes to rates from July.

Councils are currently setting their budgets for next financial year, with some pushing for rate increases of up to 8.9 per cent.

Depending on property values — which have grown significantly over the past decade — the increases could add $100 to $200 to the average annual bill or be passed on to tenants in their rents.

"It's another extra cost burden on people who are already struggling," Kate Fox from the SA Financial Counsellors Association said. 

"This is another expense for landlords, so I imagine they'll pass that on to tenants as well, so another financial stress for people."

Kate Fox says the incoming rate rises will add another layer of financial stress for households.  (ABC News: James Wakelin)

Patricia Jarrett has taken up cleaning work to help make ends meet.

"I thought when I got the pension, that's it, it's my retirement and have a good time – but there was no way that was going to happen," she said. 

"At the end of the fortnight, sometimes, we've really got nothing left. 

"The impact if the council rates go up – it will make it even worse."

Her local council, the City of Whyalla, says it's preparing to lift rates by 8.5 per cent because it cannot absorb all of the costs of inflation, ageing infrastructure and static population growth.

"I thought it was a little bit disgusting really, there are lots of families that are struggling and they should consider how hard it is to keep your head above water," Mrs Jarrett said.

SA's Local Government Association said the rate rises around the state were unavoidable.

"While we're very efficient and we try to do as much as we can with the dollars we have, sometimes increases are just a part of life," its president Dean Johnson said.

He encouraged residents with concerns to contact their local councils and provide feedback.

"In the longer term hopefully those inflationary pressures will ease back and we can have more reasonable rises in the future," Mayor Johnson said.

Dean Johnson says rate rises are "just a part of life".  (ABC News: Che Chorley)

In New South Wales and Victoria, council rates are capped and the increase is significantly lower.

Councils have policies to help people who cannot afford their rates and the National Debt Helpline has financial counsellors who offer free support at 1800 007 007.

"First thing to do is call the creditor and have a chat to them, if they're not comfortable doing that they can go and see a financial counsellor, financial counsellors are free," Ms Fox said.

Minor relief for some ratepayers 

Onkaparinga in Adelaide's south has pulled back its planned rate rise of 8.6 per cent to 7.9 per cent after inflation slightly eased in the latest figures.

"We know inflation has increased household cost of living pressure, and we've made a commitment to keep rates as close to CPI as possible," Mayor Moira Were told the ABC.

"But inflation also affects the cost of materials and services council uses to deliver its projects, services, programs and events," she said.

"We offer relief options to those experiencing financial hardship, including payment arrangements, referral to a government-funded financial counsellor, remission of fines and interest, holding off debt collection, postponement of rates and remission of rates."

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