Every Victorian council has kept their rates at the level set by an annual cap or lower, according to a new report by the state’s economic regulator.
The Essential Services Commission monitors councils’ compliance with the Fair Go Rates system which limits the maximum amount a council can increase its average rates in a year.
The commission’s executive director of pricing, Marcus Crudden, said no councils exceeded the cap amount for 2022-23, which came into effect in July.
“Seventy-seven of Victoria’s 79 councils limited their rate increases to the current cap of 1.75 per cent but Ararat Rural and Greater Shepparton City Councils did not increase their rates at all,” Mr Crudden said.
“That is a 100 per cent compliance rate by councils which is good news for ratepayers.”
Rates caps are set each year by the Minster for Local Government, with the next cap expected to be announced next month, before taking effect in July 2023.
The commission’s latest report also found four city councils, Banyule, Darebin, Melbourne, and Port Phillip, brought in waste rates or charges for the first time to help recover costs.
There are now only two councils that do not use waste charges, namely Whitehorse City Council and Yarra City Council.
Service charges, such as waste charges, are not covered by the rate cap. They are budgeted to increase by an average of 7.4 per cent per property in 2022–23.
