The Australian Bureau of Statistics has just released its latest Consumer Price Index (CPI) which, unsurprisingly, shows that people are being pinched from every direction.
According to the ABS, the most significant price rises this quarter were in housing (+1.7%), education (+5.2%) and food and non-alcoholic beverages (+1.2%).
And despite a modest rise this past quarter, Perth has suffered through the greatest price hikes in the country over the past 12 months.
Unfortunately, for residents in the City of Armadale, there’s not likely to be any relief when rates notices are sent out in a couple of months.
The city is currently advertising its intention raise rates by a further 3.6 percent.
City officers have justified this hike by referencing the projected Local Government Cost Index (LGCI) for the 2025/26 financial year, which is 3.6 percent.
The LGCI is the city’s Consumer Price Index indicator. Provided by WALGA, it provides an indication of those changes in the WA economy that relate more closely to the functions of local government and has been used as a guide to inform council decisions on rate and cost increases.
Indices used to calculate the LGCI include employee costs, materials and contracts, furniture, utilities, insurance, machinery and equipment.
The reality is that while the price of everything has gone up for residents, the same is true for local governments.
“A final point to consider is that historically, Armadale has general increased rates on or around the LGCI. It has, through prudent financial planning and budget management, avoided the ‘rate shock’ that has occurred in other local governments where rates have not necessarily kept pace with changing community expectations, inflationary costs and a higher provision of services, facilities and assets,” city officers said.
But another year of rates rises has already caused ructions within council, with six out of eight councillors voting against the motion to advertise the city’s intended rate rise, and with Cr Shanavas Peter noting his objection to the rate rise during the council meeting.
The City of Armadale is currently accepting written submissions about the rates for next financial year, and will do so until 5pm on Wednesday, May 21.
