Council rates could rise by more than 100 per cent over two years in some NSW regions. 

Over a dozen NSW local governments have applied to increase rates well above the state's 3.7 per cent “peg” for next financial year. NSW council rate increases were pegged at just 0.7 per cent this financial year, despite inflation running at over 7 per cent.

Snowy Monaro Regional council has applied for a 53 per cent rate rise over one year, while Tenterfield Shire council is seeking a staggering 104.5 per cent over two years, Bega Valley Shire council wants to raise rates by 48.3 per cent over two years, and Queanbeyan-Palerang Regional Council is seeking a 64 per cent rise over three years.

The NSW Independent Pricing and Regulatory Authority is set to decide in May whether to approve the rates rises the councils are seeking.

Federal Minister for Local Government Kristy McBain says councils are doing it “incredibly tough” right now, meaning some services might need to be reduced.

“Sometimes if we can't afford to pay for those services, they're going to be cut in our communities,” she said.