General manager Paul Bennett said IPART's decision to set the council's 2022-23 rate peg at 0.7 per cent is "disappointing" and will mean some budget adjustments will be needed.

"Our longest serving financial staff certainly can't recall the rate peg increase ever having been so low," he said.

"Unfortunately for our local government area there is no benefit in IPART's move to incorporate population growth into the rate peg calculation starting in 2022-23."

Mr Bennett said staff formed their forward financial plan based on a 2 per cent rate cap and one at 0.7 per cent equates to an additional $513,000 the council will need to find.

"Staff will now undertake a detailed review of our finances in conjunction with the newly-elected councillors," he said.

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"One focus will be our fees and charges to ensure the cost of providing specific services are being adequately covered by the fee charged."

The rate peg is the maximum percentage amount a council can increase its general income for the year.

For the first time, the amount that councils will be able to increase the revenue they can collect from rates will depend on their level of population growth.

IPART has set a 2022-23 rate peg for each council, ranging from 0.7 to 5.0 per cent.

The rate peg for the current financial year is 2 per cent.

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