Millicent Spencer
Residents in Hume could be bracing for a suite of potential rate rises to roll out across the 2023-24 financial year.
The state government has announced the 2023-24 rate cap will be set at 3.5 per cent, which is double the 2022-23 cap of 1.75 per cent.
In addition to the higher rate cap, residents in Hume are set to face further rates as the council endorsed a waste service charge at it’s last council meeting. This change will mean the cost of waste and recycling services will be removed from general rates to become a separate charge for the 2023-24 financial year.
Broadmeadows Progress Association spokesperson Sonja Rutherford said residents are very concerned about their rates potentially increasing.
“The rate cap rise means the temptation is going to be there, as was indicated by the council having taken out the cost of rubbish collection” she said.
“It’s surprising to us that the council didn’t know the government was going to increase rates when they decided to separate our waste charge.
“[Council] are viewing an increase in rates one way or another [and] will most likely take advantage of the rate increase.”
Ms Rutherford said the council should review the waste charge now the rate cap has been set.
“In future if there is going to be an increase in rates we don’t need rubbish costs,” she said.
“Our rates are not income related, it’s a flat tax, and that always has a bigger impact on people with lower income.
“It’s always of concern when there is an increase in non income based taxes.”
Hume’s chief financial officer Fadi Srour said the council welcomes the decision to increase the rate cap but acknowledges it falls short of the current financial pressures that councils are currently facing.
“Council is currently preparing our 2023-24 budget and will seek community consultation in April-May to ensure residents are made fully aware of any proposed changes to their rates,” he said.
“As part of the budget process there will be community engagement on the proposed waste charge.”
The rate cap limits the amount a council can increase its total revenue from general rates. These rates are set individually by councils for their municipalities every year through their budget process.
The 2023-24 rate cap was set 0.5 per cent lower than the Essential Services Commission’s (ESC) recommendation of four per cent. The ESC provides the government with independent advice in line with the Consumer Price Index.
A government spokesperson said the decision to set the rate cap lower than the ESC advice was to take into account the cost of living pressures facing ratepayers.
Local Government minister Melissa Horne said the 2023-24 rate cap takes into account inflation while still ensuring councils can deliver services for the community.
