North Sydney Council is home to some of the most prestigious private schools in New South Wales, including the likes of Shore, Wenona, and Loreto Kirribilli. Despite their significant landholdings and profits, these independent schools are not required to pay council rates, a situation that has placed financial strain on the already cash-strapped council, which recently enacted an 87 per cent rate increase.
Councillor James Spenceley highlighted that when the council sought voluntary contributions from these schools, none were forthcoming, with schools arguing that their presence benefits the local area. He emphasised that these institutions consume resources while contributing nothing in return, even expanding their property holdings.
Former Mayor Jilly Gibson countered that expecting private schools to financially support the council’s issues would unfairly burden families, as any additional costs would ultimately be passed on to students through increased fees.
Although schools, churches, and hospitals are typically exempt from council rates, a recent report revealed that this exemption is costing councils across Australia $270 million annually. A parliamentary inquiry has called for a review of these exemptions, warning that without change, local ratepayers face either increased rates or diminished services.