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.
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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.
