Information for ratepayers

In Victoria, council rate increases are limited by a rate cap, which is either the average rate cap set by the Minister for Local Government, or a higher cap approved by us.

The minister sets the average rate cap for each financial year. Average rate caps can apply to all councils, a class of councils or a single specified council. The average rate cap is based on the consumer price index plus or minus any adjustments.

If a council considers that the average rate cap set by the minister will not provide enough rates revenue to meet its financial needs, it can apply to us for a higher cap.

Having difficulty paying your council rates?

If you are having difficulty paying your rates, you should contact your council using the contact details provided on your rates notice. Most councils have a policy to assist ratepayers suffering financial hardship and options might include deferral of rates payments or payment plans. The details of these policies and the application process will vary between councils.

Changes in your rates may not match the rate cap

Rate caps limit the amount that a council can increase their average rate by each year, rather than the amount for individual properties. For example, if the applicable rate cap is 3 per cent, an individual ratepayer’ bill could increase (decrease) by more (or less) than 3 per cent.

The change in your rates may be different to the rate cap depending on:

• the value of your property relative to other properties in your municipality
• other charges and levies in rates bills not subject to the rate cap, such as the waste charge. The rate cap only applies to general rates and municipal charges
• your property classification (residential, commercial or rural). This is because the way councils distribute the amount of rate revenue they collect across these classifications may vary.

The Local Government Victoria website has more information about how individual property rates are calculated.

Our role in the rates capping system

We have several key roles in the rate capping system.

We advise the Minister for Local Government on any adjustment to the CPI used in setting the average rate cap each year. 

We assess any higher cap applications submitted to us by councils.

We also regularly report on:

• whether councils are complying with the rate cap (each year)
• outcomes of the rate capping system (every two years).

Queries and complaints

If your council has applied for a higher cap or has advised us they intend applying for a higher cap, see our page 2025 higher cap applications.

If you have a query about your rates notice, or the calculation of your rates, you should contact your council in the first instance.

If you have a query about your council's compliance with the rate cap, see our annual compliance reports (released around November each year).

If you have a query about the average rate cap that is set by the minister annually, or our rate capping outcomes reports, please contact us.

If your query or complaint does not fall within any of the categories above, more information is available on the Local Government Victoria website.
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