Households across NSW could see their rates go up by $20 a year after a ruling by the pricing watchdog.
The Independent Pricing and Regulatory Tribunal (IPART) announced on Monday that a local council's general income, which includes rates revenue, will be capped at 2.3 per cent in 2014/15.
If a council decides to increase residential rates in line with the cap, it would mean an average household will pay an extra $20 for the year, or slightly less than $0.40 per week.
IPART Chairman Peter Boxall said this year's rate peg, which was down from 3.4 per cent in 2013/14, reflects the lowest rise in public sector wage costs in a decade.
It also reflects the final adjustment of the carbon price advance, which was introduced to avoid double counting of the impact of the tax on council services.
The rate peg sets the maximum increase in a council's general income.
It is up to each council to determine the impact on individual rate assessments.
