Rate rises capped at 2.5 per cent

THE state government has set the cap on Victorian council rate rises at 2.5 per cent, matching the Consumer Price Index (CPI) for 2019-20. The Essential Services Commission (ESC) recommended that there be one cap across the state – and as per previous years, has applied the CPI forecast by the Department of Treasury and Finance.

An independent report by the ESC released last month found that nearly all Victorian councils complied with the 2018-19 rate cap. The previous cap has been in line with CPI – 2.5 per cent in 2016/17, 2.0 per cent in 2017/18 and 2.25 per cent in 2018/19.

Minister for Local Government Adem Somyurek said Labor’s “Fair Go Rates” program had ended the uncontrolled rate rises seen over the past decade and put the power back in the hands of Victorian families.

“Our Fair Go Rates cap is working – protecting Victorians from unfair rate rises and saving families money,” Mr Somyurek said.

“This new cap is about getting a fairer outcome for ratepayers and encouraging councils to work with their communities to deliver the things that matter most to locals.”

For more information on Fair Go Rates, head to delwp.vic.gov.au/fairgorates.