Rate capping

Council rates have been capped at 2.5 per cent for the 2016-17 financial year, as determined by the State Government’s new ‘Fair Go Rates System’.

It’s a common misunderstanding that as property values rise, Council collects more money overall, but that’s not the case. Higher property values only change how much each property owner pays towards Council’s rate revenue, which must stay within the State’s rate cap.

Some ratepayers will pay less than the rate cap and others will pay more – it all depends on how much, or little, your property value has changed.

The rate cap doesn’t apply to the Fire Services Property Levy, a charge collected by Council for the State Government, to support the State’s fire services.

There are some helpful links below about rate capping:

Rate Capping - Fair Go Rates System

Municipal Association of Victoria (MAV) - Rate Capping Campaign

Last updated: 14 February 2017