Council rate increases will be capped at the forecast Consumer Price Index for the next financial year to reduce pressures on household budgets.
Minister for local government Melissa Horne said: ”Fair Go Rates mean households have certainty over their council rates and in 2024-25, the increase will be kept to the forecast inflation rate.”
“The rates cap has made a real difference to household budgets over the past eight years and we’ll keep working to reduce costs for families.”
The Government accepted the recommendation of the Essential Services Commission regarding the cap.
The rate cap limits how all Victorian councils can increase their total revenue from general rates and municipal charges.
Ministerial Guidelines have also been released for service rates and charges for the collection of kerbside waste and recycling from properties. Service rates and charges used to fund waste collection and management are not subject to the rate cap.
The Guidelines also detail that services that provide a general benefit to the whole municipality, like tree planting, graffiti removal, and street cleaning, should not be funded by service rates or charges to individual ratepayers.
Councils are able to apply for a higher rate cap if they can demonstrate community support and a critical need for spending on services or projects that require a rate rise above the capped amount.
