New cap is announced for councils across Vic

THE state government has set a new 1.75 per cent rate cap for all Victorian councils – including Latrobe City – for the 2022/23 financial year.

Minister for Local Government Shaun Leane announced the cap recently under the state government’s Fair Go Rates system.

The Fair Go Rates system began in 2016 to limit uncontrolled rate hikes and to provide councils with a framework to guide their budgeting and deliver services.

“We introduced the Fair Go Rates system to help reduce cost-of-living pressures for Victorians by preventing uncontrolled rate hikes from local councils across Victoria,” Mr Leane said.

“Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”

The cap is set each year by the Minister for Local Government with advice from the Essential Services Commission, guided by the Consumer Price Index.

Before the Fair Go Rates system was introduced residents faced an average rate increase of six per cent every year.

The current rate cap of 1.5 per cent is the lowest since the system was first introduced.

Councils collect rates from residents annually to fund infrastructure and services such as local parks, libraries, community centres, roads, kindergartens, waste collection and sports grounds.

Councils individually set rates for their municipalities every year through their budget process and must consult with their communities on decisions relating to budgets, rates, and other charges.