The council falls in the rural category and will lobby for the category to be combined with the regional rural category, which constitutes higher fees.

Councillors are currently paid $11,570 a year, and the mayor is paid $25,250 on top of their annual remuneration as a councillor.

This contrasts sharply with metropolitan councillors who can be paid up to $40,000, and mayoral fees of up to $200,000.

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In a submission to the tribunal, acting corporate and cultural services director Tim Muldoon argued that the criteria was "far too subjective and assumes the councillor role for metropolitan councils is much more difficult than rural councils".

Cr Murray O'Keefe backed this argument, saying rural councillors were worth their salt, putting in just as many hours as their city counterparts.

"It's actually insulting to rural communities," he said.

"It's actually saying, if you choose to live or work in a rural community, you're not worth as much as someone who chooses to live in a big centre."

Cr O'Keefe said there were fewer councillors and resources to tackle "unique issues" in rural and regional communities, such as drought and decreasing populations, and it was vital to "attract people with skills and talents".

"When you look at the amount we're paid and the minimum time it takes to genuinely discharge your duties to serve the community, it's somewhere akin to $4 or $5 an hour ... it's just not feasible," he said.

"If we're trying to encourage people to live and work in rural Australia, we need to change that.

"By not paying an appropriate remuneration, you're stuck with relying on people to essentially volunteer and that limits candidates ... and there's not going to be competition for council roles."

Tamworth councillors could receive more pay following the review if the council is included in the tribunal's proposed "regional rural" category.

It is understood the new category would be aligned with the current "metropolitan medium" level.

If the remuneration package is also aligned with metro-elected representatives, Tamworth councillors could be in line for a big pay rise.

Under the current fee structure, a metropolitan medium councillor is entitled to a $25,790 annual pay packet - 27 per cent more than the current pay for Tamworth councillors.

A mayor in a medium metro council can attract an annual pay-packet worth $94,140; more than 45 per cent greater than the current mayoral remuneration package.

Gunnedah councillors last received a pay rise in 2017.