Wollongong Council rates reform kicks in: what ratepayers need to know about new valuation system

Wollongong City Council is preparing to implement new property valuation rules that will reshape how the council calculates rates for about 80,000 ratepayers across the city and surrounding suburbs. Under NSW government legislation passed in 2025, councils must move from four-year revaluation cycles to annual property valuations starting from the 2027-28 financial year. For Wollongong residents, this means rate notices will be based on more current market assessments of their property values.

The shift responds to long-standing complaints from ratepayers that council valuations lag far behind actual market conditions. In regional areas like the Illawarra, property values have shifted unevenly since the pandemic. Some suburbs around Port Kembla and the CBD have seen significant growth, while outer areas have seen slower movement. Under the old four-year cycle, some properties were assessed on valuations that were three years out of date before the next update occurred. The state government argues annual valuations create a fairer system where the tax base reflects current conditions rather than historical snapshots.

How this affects Wollongong households

The practical impact for residents depends heavily on where they live. A Wollongong homeowner in a pocket where property values have risen sharply could see their annual rates increase once their property is revalued upward in 2027 or 2028. Conversely, homeowners in areas where values have plateaued or declined could see smaller increases or potential decreases. The NSW legislation allows councils discretion over the rate-in-the-dollar figure they apply each year, meaning Wollongong Council can theoretically hold overall rate revenue flat even if individual properties are revalued higher or lower. However, councils cannot reduce the total amount they collect without approval from the state's Independent Pricing and Regulatory Tribunal (IPART).

For renters and social housing residents, the indirect effects are worth watching. Councils often use rates revenue to fund community services, libraries, waste management, and local infrastructure. If the valuation shift triggers rate rises for rental property owners, those costs may be passed on through rent increases. Conversely, if some property owners see lower revaluations, their rate bills could stabilise, potentially tempering rental pressures.

Timeline and what happens next

Wollongong Council has until mid-2027 to conduct new valuations on all rateable properties using approved valuation practitioners. Council staff told the Wollongong Mercury in late 2025 that the transition would require recruitment of extra assessment officers and may cost between $400,000 and $600,000 per year to maintain. That cost is expected to be factored into the council's operational budget. The council must display the new valuations publicly for 14 days before the 2027-28 rates are issued, giving residents a chance to lodge objections with the Valuer-General.

Property owners who believe their 2027-28 valuation is incorrect will be able to appeal to the Valuer-General's office. The state body manages a formal review process, though historically these reviews succeed in less than 20 percent of cases, according to recent Productivity Commission analysis on local government valuations.

Wollongong Council will provide more detailed information about the changeover in its 2026-27 budget documents and will hold community information sessions once the council's new valuation methodology is finalised. Residents should expect their council rates notice in August 2027 to include the new valuation figure and explanation of how it was calculated.