A special meeting of Sutherland Shire Council on Monday agreed all ratepayers should share in making up for the removal of the special rates levy on Cronulla CBD business properties.
The council voted 10-4 in support of a staff recommendation to add about 12c a week, or $6.46 a year, to the approved rate-pegging rise of 2 per cent in 2021-22.
Individual rates will vary, but the average increase will be about 2.05 per cent.
The move is compliant with the IPART rate peg of a total rate yield increase of two per cent.
The measure will be included in the draft budget and operational plan, which will be publicly exhibited before a final decision.
Staff were earlier asked for other ways to make up for losing about $600,000 a year by removing the Cronulla CBD levy, which was introduced in the 1980s, initially to promote the mall.
The staff said other options would include permanently increasing user fees and charges, or permanently reducing capital expenditure.