New rate peg changes must be fair to ratepayers says Wagga ratepayer spokesperson Chris Roche

The Independent Pricing and Regulatory Tribunal (IPART) announced the changes, which could help ease the pressures currently pushing councils to the financial wall, late last week.

While mayors across the region have welcomed the major shake-up, Wagga Residents and Ratepayers Association president Chris Roche said the tribunal also needs to hold councils to account for rate rise requests.

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He took issue with how council spends its dollars around town, in particular the roads - amid reports a stretch of Lake Albert Road has been repaired three times in the last 12 months.

"Wagga Council is screaming for more money to do what it needs to do, but if they can't get the job done right the first time, why should we give them more money," Mr Roche said.

On Tuesday, mayors welcomed changes to the rate peg saying it has not been keeping step with inflation.

But Mr Roche is sceptical.

"Councils and others will provide other reasons why rates are rising... and why [Lake Albert Road] has been worked on three times, but... if council wants to increase our rates, we need justification that council will spend that money correctly," he said.

The rate peg changes will involve more forward thinking indicators rather than retrospective ones, to help rates keep pace with costs.

The changes will also see a base rate calculation introduced, which recognises the different financial challenges faced by different kinds of councils, from large metropolitan to small rural councils.

Three further components will also be introduced which have a specific financial impact on councils, including employee costs, asset costs and other operating costs.

ESL adjustment components are also set to be factored into future rate peg calculations.

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