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Delivering For Ratepayers

Delivering For Ratepayers

State Government Setting Cap On Council Rates

The state government has announced a new cap on council rates, setting the cap on rate rises at 2%.

Minister for Local Government Adem Somyurek announced the new cap on Friday. The cap is guided by the Consumer Price Index (CPI) forecast by the Department of Treasury and Finance for the next financial year.

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Mr Somyurek says the government is delivering a fairer deal.

“We said we’d protect Victorians from unfair rates hikes and that’s exactly what we’ve done.”

“Our Fair Go Rates system has put a stop to a decade of unfair, unsustainable increases that hit hard-working Victorian families.”

“Fair Go Rates is encouraging Victorian councils to improve accountability and transparency, ensuring they are listening to their communities and delivering the services that matter most.”

The Fair Go Rates cap has been in place for four years and brought to an end a decade of council excessive rates increases, which averaged six per cent per annum.

The cap was set at 2.5 per cent in 2016-17, 2 per cent in 2017-18, 2.25 per cent in 2018-19 and 2.5 per cent in 2019-20.

The cap is also informed by the Essential Services Commission (ESC) who have recommended that it be set at CPI.

Reports by the ESC in 2019 showed that, for the first time, all 79 of Victoria’s councils had complied with the rate cap.

As a result of Fair Go Rates, annual growth in council rates has slowed and spending on capital and services has increased.

For more information on Fair Go Rates visit

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