This year’s rate increases will be capped at the forecast Consumer Price Index for 2025-26 of 3 per cent, up from 2.75 per cent in 2024.
The decision was announced by Local Government Minister Nick Staikos on December 23.
The rate cap limits the amount all Victorian councils can increase their total revenue from general rates and municipal charges. Rates are set by each local council to fund services and facilities like local parks, libraries, community centres, roads and footpaths, kindergartens and sporting facilities.
Councils may apply to the Essential Services Commission for a higher rate cap if they can demonstrate a critical need for spending on services or projects that would require a rate rise above the capped amount.
