Rates capped for 2023/24

By Lachlan Ellis

The State Government has handed down its rate cap for the 2023/24 financial year, limiting the amount councils can increase their total revenue from rates and municipal charges.

The Government received a recommendation from the independent Essential Services Commission to cap rates increases at 4 per cent, in line with the Consumer Price Index (CPI) – however, it decided to set the cap at 3.5 per cent instead.

This marks a doubling of the rate cap for the current financial year, which was set on 29 December 2021 and sits at 1.75 per cent.

Minister for Local Government Melissa Horne said the rate cap balanced the need for councils to raise revenue, while also considering cost of living pressures facing ratepayers.

“The rate cap for the next financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services,” Ms Horne said.

“Each council is responsible for setting rates within the rate cap based on the needs of their community. Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”

Moorabool Shire Council CEO Derek Madden said the increase to 3.5 per cent was reasonable, as Council continues to work on its next budget.

“Council acknowledges that the rise in the rate cap to 3.5 per cent makes sense given a CPI currently running at around 7 per cent. Council is currently preparing its budget, and will be considering the amount rates will need to increase in order for Council to maintain the level of services expected by residents,” Mr Madden told the Moorabool News.

“As the rate cap set is lower than inflation, Council will be looking to the Victorian Government to continue to provide grants to ensure community expectations can be met in our fast-growing shire, particularly in regard to road improvements and development of much-needed new community facilities.”

Mr Madden said that Council would continue to offer support to residents and organisations across Moorabool.

“We understand with the rising cost of living that many individuals as well as organisations will face challenging times ahead just as the community is recovering from COVID,” he said.

“As always, we will have provisions in place to support any resident experiencing difficulty paying rates.”