Muswellbrook Shire Council has resolved to apply for a Special Rate Variation (SRV) with the Independent Pricing and Regulatory Tribunal (IPART), as it prepares for the economic and social impacts of looming mine closures.
Councillors voted in favour of beginning the process to secure a “fairer share” from mining companies, while ensuring residents and local businesses are protected from any disproportionate rate burden.
With the Mt Arthur and Mangoola mines projected to close by 2030, Council faces the eventual loss of around 25 per cent of its annual rate base. This shortfall could significantly affect its ability to maintain essential community services such as roads, waste collection, parks, libraries, and cultural and sporting facilities.
Mayor Jeff Drayton said the SRV process was about long-term sustainability and fairness.
“This is about preparing for the future and fairness for our residents and businesses in Muswellbrook Shire. The mines have contributed enormously to our economy and still do. But as they wind down, we need to make sure the rate contribution reflects the reality, without shifting the load onto residents and small businesses,” Cr Drayton said.
Council has outlined the next steps in its SRV process:
- Consultants engaged – Independent experts will be appointed to model financial scenarios and test options.
- Community consultation – Formal engagement with residents and businesses will begin in September, including surveys, meetings and submissions.
- Financial modelling – Detailed analysis will be undertaken with a focus on protecting households and businesses.
- IPART application – A formal submission will be lodged by February 3, 2026.
- Potential implementation – If approved, the SRV would come into effect in the 2026/27 financial year.
Mayor Drayton said Council would ensure residents and businesses are kept informed throughout the process.
“We’re starting this early to get ahead of the analysis and consultation needed to make sure Muswellbrook remains financially sustainable for our kids and grandkids,” he said.
The anticipated revenue from the SRV is yet to be determined and will be subject to financial modelling during the application process.
