By Matthew Sims
Maribyrnong council has welcomed the new rate cap of 3.5 per cent for the 2023-24 financial year.
Local Government Minister Melissa Horne announced the cap on Thursday, December 29, following independent advice from the Essential Services Commission [ESC] recommending a cap of four per cent in line with the Consumer Price Index.
Ms Horne said the rate cap of 3.5 per cent took higher inflation and the need to protect ratepayers from unlimited rate hikes into account.
“Each council is responsible for setting rates within the rate cap based on the needs of their community,” she said.
“Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”
Maribyrnong mayor Sarah Carter said council would welcome the flexibility the increase would providing following the COVID-19 pandemic.
“Council’s finances were impacted significantly during the pandemic, with millions in funding provided to help support its community along with reduced revenue from fees and changes which made preparing a balanced budget to meet the community’s needs for more and better services with the current year’s rates cap of 1.75 per cent particularly challenging,” she said.
“During the pandemic, council adopted a zero rates rise to take pressure off residents and businesses, which has also had an impact on available resources.”
Cr Carter said council would consider its position regarding the rates it would be charging in the 2023-24 financial year during its budget deliberations in June.
“The high rate of inflation which, coupled with a marked increase in the costs in delivering capital works and infrastructure projects, has made it particularly challenging to deliver the community assets our growing community requires,” she said.
Councils set rates to fund essential community services and infrastructure such as parks, libraries, roads, waste collection and sporting grounds.
Details: localgovernment.vic.gov.au/council-rates-and-charges
