News
Council rate cap set at three per cent

by Keith Anderson
The rise in next year's general rate increase by councils has been set at three per cent.


Individual municipalities can apply for a greater increase if they can demonstrate a critical need. In the past, Baw Baw Shire has limited rate increases to within the cap since it was first introduced by the state government in 2016-2017.
Mayor Danny Goss described the cap as "reasonable in the circumstances" but was nowhere near the level of inflation on inputs to council costs.
The increase in costs for materials was much more than three per cent and wages have also risen, he said.
The rise applies to the total amount of general rates levied by councils and is not a three per cent increase on each rateable property.
Cr Goss said based on the amount of general rates set in 2024-25, the increase next financial year would return council about an extra $1.8 million.
He said that would be a key part of deliberations on setting the next budget and he expected revenue and priorities on how it was spent would be heavily scrutinised by the new council that was elected last November.
However, Cr Goss said the total bill for property owners would include a new Emergency Services and Volunteer Fund (ESVF) that council was required to collect for the state government, which would be higher than the Fire Services Levy it will replace.
As well as funding the Country Fire Authority and State Emergency Service the ESVF would finance the Triple Zero emergency call service the State Control Centre and Emergency Management Victoria that have previously been funded from government's general revenue.
The rate cap does not apply to service charges levied by councils or to waste management costs.
Some ratepayers may be charged more or less than the three per cent based on valuations of their properties that are reassessed at the start of each year.
Local Government Minister Nick Staikos said the increase was set at the level of the forecast Consumer Price Index and was aimed to reduce pressure on household budgets while still allowing councils to provide essential services for residents.
Peri-Urban Council's Victoria, an advocacy group for councils on the fringe of the greater Melbourne area including Baw Baw Shire, that are experiencing rapid growth has already called for the government to establish two specific funds to allocate additional revenue to them for essential infrastructure and services.

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