The Goulburn Ratepayers Action Group (GRAG) is aiming for a 10,000-signature petition to have the matter debated in the NSW parliament.

Members and helpers have so far gathered 8600 signatures to the petition opposing the proposed 51.2 per cent hike over three years. The document contends that the increase will "cause financial hardship on residential, commercial and rural ratepayers."

"I've never seen the community so motivated and people are very keen that something is done," GRAG chairperson Nina Dillon said.

Members and volunteers have set up in the Goulburn Workers and Goulburn Soldiers Clubs, Marketplace shopping centre to gather signatures. The petition is also in 115 business premises, some banks and Goulburn MP Wendy Tuckerman's and Hume MP, Angus Taylor's offices.

District outlets such as the Tarago Service Centre and Marulan Post Office have also

Ms Dillon said 50 to 60 were signing the document daily and she was confident of reaching the 10,000 mark.

"Once it got going it snowballed," she said.

"I feel positive that a lot of people understand what's going on and that's good. People in the community tell us to keep fighting and not give up because we're in the middle of a financial crisis."

People can be any age and don't have to be Goulburn Mulwaree residents to sign the petition. Ms Dillon didn't believe this would detract from its credibility, saying it still showed people's interest in the broader issue.

However she said she was amazed by the number of people who weren't aware of the flagged rate rise.

"About 30 to 35 per cent of people thought the whole thing had stopped after the (council) survey," Ms Dillon said.

The petition will also be lodged as a submission to the Independent Pricing and Regulatory Tribunal, which will assess the council's application.

Submissions closed on Monday, March 18. IPART will assess the council's application and public feedback before deciding the matter in May.

At the same time, several inquiries are underway into local government funding and sustainability.

On March 18 the state government announced an Upper House inquiry into the ability of councils to fund infrastructure and services.

Chair, Emily Suvaal MLC said councils were experiencing "significant financial challenges which are threatening the (sector's) long-term sustainability."

''This inquiry will examine the level of income councils require to adequately meet the needs of their communities, and give consideration to the current levels of service delivery and financial sustainability in local government," she said.

It will also examine the social and economic impacts of the state's rate peg and consider alternatives.

"In addition, the committee will review the operation of the special rate variation process and its effectiveness in providing the level of income councils require to adequately meet the needs of their communities," Ms Suvaal said.

Submissions are open until Friday, April 26, 2024 with committee activity to follow later in the year. People can have their say on the standing committee on state development's website.

IPART was tasked with reviewing councils' financial model but the state government withdrew this on March 19 to "avoid unnecessary" duplication with the Upper House inquiry.

Separately, the state government is reforming the way the emergency services levy is funded. Councils, including Goulburn Mulwaree, have complained about their "high" contributions to the levy.

Local Government NSW president, Darriea Turley, was recently appointed to a nine-member panel to guide the reform.

In addition, Local Government NSW has lobbied for an end to state "cost shifting" on to councils. A consultant's report stated that this cost $1.36 billion in 2021/22 or $460 per ratepayer. It cited the emergency services levy, waste levy, "forced rate exemptions" and "additional regulatory functions" as just some of the 'imposts.'

In February, Goulburn Mulwaree Council wrote to Premier Chris Minns, local government minister, Ron Hoenig and shadow ministers asking them to "promptly address" cost shifting.

Ms Dillon argued IPART should hold off on a decision about the council's rate increase proposal until the inquiry into the sector's financial model was completed.

"If it (the increase) goes through, it will be the biggest cost shifting exercise onto ratepayers ever," she said.