North Sydney Council hosts some of the most expensive private schools in NSW, who own expansive amounts of land – but like all independent schools, they don’t pay council rates.

Last year the cash-strapped council, which just passed an 87 per cent rates rise, asked all independent schools in the area to pay voluntary rates, but North Sydney Councilor James Spenceley has revealed unsurprisingly none have agreed so far.

“We’ve had a couple of responses. They’ve come back and said we provide a benefit to the LGA by simply being here. Basically they’ve said no, we’re not making payments,” Spenceley said.

Six high-fee independent schools are located within North Sydney Council including Shore, Wenona, St Aloysius, SCECGS Redlands, Loreto Kirribilli and Monte Sant’ Angelo Mercy College.

“They take up huge amounts of land, huge amounts of services, all the things we provide that make a great area, they consume for free,” Spenceley said.

“They’re businesses, they’re so profitable that they’re buying extra parts of the LGA. In one case here they bought houses to the point they own the entire street.”

But former mayor Jilly Gibson says it’s families who would pay the price.

“Private schools in North Sydney shouldn’t have to chip in to bail North Sydney Council out of this self-inflicted financial crisis,” she said.

“That will simply be passed on to the students via the fees.”

Schools, churches and hospitals are usually exempt from paying council rates.

Rate exemptions are costing councils $270 million a year, according to a 2023 report from consulting firm Morrison Low.

A recent parliamentary inquiry into council abilities to fund services recommended an urgent review into exemptions by the government.

It said without it, ratepayers must either pay higher rates or accept lower service levels.