The Independent Pricing and Regulatory Tribunal (IPART) has approved Georges River and Bayside council's applications to increase their rates.
Georges River Council's minimum rate will increase to $965.80 for residential, $1500 for CBD business and $1100 for other business in the 2021-22 financial year.
IPART also approved the council's application for a special rate variation of 32.6 per cent increase over five years, retained permanently in the rate base.
Georges River Council is expected to adopt a Special Rate Variation (SRV) as a part of its new budget.
The council's general manager Gail Connolly told the Leader earlier this month that the rate increase would replace the expiring $2.3 million former Hurstville Council rate increase.
"The special rate variation that we have applied for will mean that our rates income remains unchanged, it is simply replacing the expired SRV from Hurstville Council," she said.
"Our strategy in relation to new capital works projects remains unchanged, meaning that all of our new projects are funded from developer contributions or government grants."
IPART acting chair Deborah Cope said many residents across the eight councils approved approved for rate variations provided feedback on the plans.
"We appreciate the large number of submissions we received from ratepayers on the applications and would like to assure the community that these submissions were carefully considered," she said.
"IPART had to balance community concerns against some councils' demonstrated need for additional revenue to provide important community facilities such as roads, parks, playgrounds and libraries."
Bayside Council's minimum rates will be increased over a four year transition to $844.16 for residential and business customers by 2024-25.
Minimum rate applications respond to a government requirement to harmonise rates and will allow the councils to make rating structures consistent across the newly merged councils.
Harmonising minimum rates will not change the council's general income overall.
Councils are required to show that they have conducted community consultation, assessed the impact on ratepayers as well as made productivity savings where possible.
The rate peg for 2021-22 is set at 2.0 per cent. It is the maximum percentage amount by which a council can increase its income from rates.
Councils requiring additional revenue are able to apply to IPART for increases above the rate peg, known as special variations.
"We have attached conditions to the special variation approvals requiring the councils to use the additional income for the purposes outlined in each application," Ms Cope said.
"The Councils are also required to report to the community about how the additional revenue is spent," said Ms Cope.
The full reports on all of the councils' applications are available on IPART's website: ipart.nsw.gov.au/Home.