Ratepayers should brace for larger rates bills than they anticipate, the Municipal Association of Victoria (MAV) says.
Moorabool council was granted permission by the Essential Services Commission’s to increase rates by 3.5 per cent – higher than the state’s 2.5 percent rate-rise cap – effective from July 1.
Individual ratepayers will be impacted differently because their properties have been revalued.
MAV president Bill McArthur said rate-rise capping policy had not been adequately explained to ratepayers.
Some charges and levies were excluded from the cap and would be imposed separately.
“The government’s ‘fair go’ rates have led many community members to believe their rates notice will not be more than 2.5 per cent higher than it was last year,” Mr McArthur said.
“However, 2016 is a property revaluation year and all Victorian properties were revalued as at 1 January. Rates paid by individuals will depend on their new property valuation relative to other properties within their municipality.
“Some ratepayers will pay less than the 2.5 per cent cap and others will pay significantly more, but the overall rates collected by a council won’t exceed the rate cap, unless they were granted an exemption from the cap.”
