Why this transfer is needed
Central Coast Council currently applies a Stormwater Drainage Charge to most properties in the Council area. This charge helps Council manage the stormwater drainage network sustainably.
The charge is currently set under the Water Management Act 2000, regulated by the Independent Pricing and Regulatory Tribunal (IPART), and included in the water bill.
From 1 July 2026, changes to legislation mean Council can no longer apply this charge under the Water Management Act on the water bill.
To maintain funding for essential stormwater drainage services, Council proposes to apply a Drainage Charge to the rate notice under the Local Government Act 1993 for ratepayers who currently pay the charge.
This change would result in a cumulative increase to Council’s rate income of 12.67% (including 3.2% rate peg), however this would be offset by an equal reduction in revenue currently received through the Stormwater Drainage Charge levied via the Water Bill. This means there would be no increase as a result of this transfer – you will pay the same amount as if the charge were on your water bill.
To make this change, Council must apply to IPART for a Special Variation.
Before submitting the application, Council is seeking community feedback.
Key facts
What the transfer looks like
Council proposes to move the Stormwater Drainage Charge from the water bill to the rate notice. There will be no increase as a result of this transfer – you will pay the same amount as if the charge were on your water bill.
What the Stormwater Drainage Charge funds
The Stormwater Drainage Charge helps Council manage the stormwater drainage network sustainably. It funds:
- maintenance and replacement of existing stormwater infrastructure
- construction of new infrastructure as the network expands.
The network benefits the whole community by protecting public infrastructure, safeguarding natural assets, connecting communities and supporting access to work, recreation and essential services.
Please note that the Stormwater Drainage Charge does not fund the construction of kerb and gutter, which is a road asset funded through ordinary rates.
Make a submission
To share your feedback on the proposed Stormwater Drainage Charge transfer you can:
- Complete the online submission form (below)
- Email: engagement@centralcoast.nsw.gov.au
- Write to Council: PO Box 20, Wyong NSW 2259
Submissions close 5pm, Sunday 11 January 2026.
Frequently Asked Questions
No. You will pay the same amount as if the charge were on your water bill. The only change is that it is on your rate notice instead.
Like other rates, the Stormwater Drainage Charge will be subject to annual rate peg adjustments set by IPART (currently 3.2%). The rate peg is a cap on how much councils can increase general rates income each year. These adjustments also apply to water bills and are part of normal yearly changes, not because of this transfer.
The NSW Government changed the Water Management Act in August 2024. From July 2026, Council can no longer levy this charge on water bills. The proposed transfer standardises how drainage charges are applied and aligns Council with other NSW councils.
It helps Council manage the stormwater drainage network sustainably. It funds:
- floodplain risk management planning
- asset planning
- maintenance and replacement of existing stormwater infrastructure
- construction of new infrastructure as the network expands.
The network benefits the whole community by protecting public infrastructure, safeguarding natural assets, connecting communities and supporting access to work, recreation and essential services.
In 2024-25, Council invested in expanding, upgrading and maintaining the stormwater drainage network:
- Roads and drainage infrastructure: $18 million
- Road construction and maintenance: $8.8 million
- Drainage upgrades: $5.5 million
- Culvert projects (renewal, replacement and design): $3 million
You can view all new drainage works for this financial year on Council’s Capital Works Map:
The Stormwater Drainage Charge does not fund kerb and guttering, which is a road asset funded through ordinary rates.
No. On 15 August 2024, the NSW Government passed changes to the Water Management Act through the Water Management Amendment (Central Coast Council) Bill 2024.
These changes formally removed Council’s ability to levy the Stormwater Drainage Charge under the Water Management Act from the 2026-27 financial year.
The transfer would result in a cumulative increase to Council’s rate income of 12.67% (including 3.2% rate peg). This would be offset by a equal reduction in revenue currently received through the Stormwater Drainage Charge levied via the Water Bill. This means there would be no nett increase to Council’s overall revenue as a result of this change.
Without a Special Variation application, Council will not be able to transfer the charge.
The charge funds maintenance and replacement of existing stormwater infrastructure and construction of new infrastructure as the network expands. Council manages about 1,201 kilometres of drainage pipes, pits and channels and more than 100,000 drainage assets.
If the charge is removed, Council would lose around $22 million in funding. To offset this, money would need to be redirected from other services, leading to reduced service levels across many areas.
Council’s long-term financial plan already includes significant efficiency targets that maintain current service levels.
Further efficiencies would only be possible by reducing services. This could mean shorter operating hours or even closing some services.
No. This change is separate from the water and sewer pricing submission.
On 23 September 2025, Council submitted its water and sewer pricing proposal for the 2026-2031 period to the Independent Pricing and Regulatory Tribunal (IPART).
IPART has now published the proposal and is inviting community feedback.
No. Only properties already paying the charge will continue to do so after the transfer.
The change will only impact properties that currently have the charge.
The annual Drainage Charge that will be included on the rate notice, as a result of the proposed transfer, would be off-set by the removal of the same charge from the water bill.
The annual rate peg increase will continue to apply to rates as it does each year.
The table below shows the dollar and percentage impacts on each rate category (Table 1), which are off-set by reductions in the water bill (Table 2).
The annual Drainage Charge that will be included on the rate notice, as a result of the proposed transfer, would be off-set by the removal of the same charge from the water bill.
The annual rate peg increase will continue to apply to rates as it does each year.
The table below shows the dollar and percentage impacts on each rate category (Table 1), which are off-set by reductions in the water bill (Table 2)
Table 1: Impact on Rates Notice from transfer of Annual Drainage Charge
Table 2: Net Impact on Rates Notice and Water Bill from transfer of Annual Drainage Charge - reflecting the offset
This page was updated on Tuesday 23 December 2025 at 3:30pm.
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