A motion not to pass on the IPART-approved 4.5 per cent rate rise was voted down by Georges River Council.

Georges River's budget would take a $4.5 million hit if the council did not apply the Independent Pricing and Regulatory Tribunal (IPART) approved 4.5 per cent rate rise.

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Councillor Thomas Gao called on Georges River Council not to pass on the 4.5 per cent rate increase but instead tighten its belt rather than asking residents to tighten theirs.

He submitted a notice of motion at this week's council meeting asking that there be no rate rise at all in the 2026-27 financial year.

"Our residents are experiencing a cost of living crisis," Cr Gao said.

"Council must be willing to reduce bureaucratic processes and red tape and redirect resources to front-line services. Council must reduce reliance on consultants and contractors by bringing council work back in-house to ensure our services are delivered to standard and residents are getting the bang for their buck for the rates that they pay.

"By not applying the 4.5 per cent rate rise this year would mean the council would miss out on an additional $4.5 million. This is obviously a big number. What it should do is trigger the council to reassess itself and look for savings, efficiencies and manage priorities just a bit better. Council cannot keep resorting to raising rates for residents as an answer to all its problems.

"Before the council asks residents to tighten their belts again this year amid a cost of living crisis, the council should show how to tighten its own," he said.

Councillor Christina Jamieson spoke against Cr Gao's notice of motion and proposed an amendment that the council:

• Acknowledges the cost of living pressures facing residents and notes the support available through eligible pensioner rebates, interest-free payment plans, and deferral options.
• Notes the local government governance and financial sustainability reforms currently being progressed by the Minister for Local Government, Ron Hoenig, and affirms Council's ongoing advocacy for a rating framework that promotes sustainability, equity, and transparency.

"Georges River Council's average residential rates and rates per capita sit broadly within the mid-range when compared with similar metropolitan councils," Cr Jamieson said.

"NSW Local Government Minister Ron Hoenig has acknowledged the scale of the challenge facing councils, stating that 'the financial sustainability of councils is one of the most significant issues facing local government in this state' and that 'it's clear the status quo is not sustainable for councils and it's not fair on communities who will lose out.'

"These are not isolated concerns. They reflect a systemic issue across local government, driven in large part by ongoing cost shifting from State and Federal Governments.

"Councils are increasingly required to deliver additional services, infrastructure, and regulatory functions without adequate funding support. The latest LGNSW cost shifting report estimates this burden at almost $500 per ratepayer per year.

"At the same time, council must also respond to the NSW Government's housing reforms, which will increase population density and demand for infrastructure-without commensurate funding to deliver those upgrades. That responsibility ultimately falls back on councils and ratepayers and will require careful financial management to ensure sustainability," she said.

She was supported by Cr Kathryn Landsberry.

"The IPART rate of 4.5 per cent is not actually a rate rise. It's like the CPI, it's like inflation that we are allowed to do every single year," Cr Landsberry said.

"Councils are always being asked to do more with less. We are always being asked to accept more cost shifting from successive state governments. It doesn't matter which party is on the government benches. Councils are always punched down on by state governments.

"The budget would take a hit of $4.5 million if we are to accept Cr Gao's motion. That would really be irresponsible for us to do that notwithstanding that we are aiming for a surplus to help support our contribution to the Carss Park Pool.

"To take a $4.5 million hit to the budget would be catastrophic. How do we make up that shortfall? Do we lose some jobs? Do we take that from libraries? Do we stop maintaining our sporting fields? Do we stop doing traffic studies? Where does that money come from? It's got to come from somewhere?"

Cr Jamieson's amendment was supported by the council.