Cessnock City Council’s controversial bid for a near 40 per cent rate increase has been knocked back by the Independent Pricing and Regulatory Tribunal (IPART), bringing months of heated debate over the plan to an abrupt halt.

The council had sought approval for a Special Variation of around 39.9 per cent for the 2026/27 financial year, arguing the increase was needed to address ongoing financial pressures, infrastructure demands and long-term sustainability challenges.

The proposal would have seen average household rates rise significantly, with residents previously warned the hike could add hundreds of dollars to annual bills.

However, IPART has now refused the application, ruling against the large increase after reviewing council’s financial position and community submissions.

The decision follows extensive public consultation, with residents and businesses strongly opposing the scale of the proposed rise and raising concerns about cost-of-living pressures.

Council had defended the application as necessary to maintain essential services and address infrastructure backlogs, while critics argued it placed too much burden on ratepayers already under financial strain.

The rejection leaves Cessnock City Council to reassess its budget strategy and long-term financial plan, with pressure now likely to mount on how it will bridge funding gaps without a major rate increase.

Further updates are expected as council responds to the decision.