A new rate cap of 1.75 per cent has been set for Melton, Moorabool and all Victorian councils for the 2022-23 financial year, which is designed to help ease cost of living pressures for Victorians.
Local Government Minister Shaun Leane announced the cap last week, under the Victorian government’s Fair Go Rates system.
The system began in 2016 to limit uncontrolled rate hikes and to provide councils with a clear framework to guide their budgeting while ensuring essential services continue to be delivered.
The cap is set each year by the Local Government Minister with advice from the Essential Services Commission which is guided by the Consumer Price Index.
Before the Fair Go Rates system was introduced, residents faced an average rate increase of 6 per cent every year.
The current rate cap of 1.5 per cent is the lowest since the system was first introduced.
Councils collect rates from residents annually to fund and deliver essential community infrastructure and services such as local parks, libraries, community centres, roads, kindergartens, waste collection and sports grounds.
Each year, councils set rates for their municipalities through their budget process and must consult with their communities on decisions relating to budgets, rates, and other charges.
“We introduced the Fair Go Rates system to help reduce cost-of-living pressures for Victorians by preventing uncontrolled rate hikes from local councils across Victoria,” Mr Leane 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.”
