The Andrews Labor Government’s commitment to end uncontrolled council rate rises has been delivered, after the Victorian Parliament passed the Fair Go Rates system.
The Local Government Act Amendment Bill was passed in the Legislative Council and will stop councils raising their rates above a cap, based on the Melbourne Consumer Price Index (CPI).
Despite attempts from the Greens to vote the bill down, the Fair Go Rates system will be in place for the 2016-17 financial year, fulfilling the Labor Government’s election commitment to rein in council rate hikes.
Minister for Local Government Natalie Hutchins said that with an average rate increase of 6 per cent every year for the last decade, it was clear that the Fair Go Rates system was needed.
The Bill also provides the Essential Services Commission (ESC) greater oversight of council spending, ensuring ongoing compliance and monitoring of overall outcomes for communities.
Ms Hutchins said the Fair Go Rates cap reflected the Labor Government’s agenda to reform the local government sector, including a review of the Local Government Act, an overhaul of council governance standards and an improved performance reporting framework.
In developing the Fair Go Rates system, the Government tasked the ESC with providing recommendations on the cap, including undertaking extensive consultation with councils and communities across Victoria.
The Fair Go Rates system will become law after receiving Royal Assent.
Quotes attributable to Minister for Local Government Natalie Hutchins
“By introducing the Fair Go Rates system, the Andrews Labor Government is delivering on its commitment to cap council rate rises and protect Victorian households from uncontrolled hikes.”
“Our Fair Go Rates cap won’t stop councils delivering the services and facilities their local community values and needs. What it will do is improve local government accountability and transparency, and ensure councils are listening to their communities.”
“We were given a clear mandate to implement this policy – and despite deliberate mischief making from the Greens and Liberals – we’ve delivered on our commitment.”
“Council rates have been rising uncontrollably for too long. It defies logic why any fair minded Member of Parliament would vote to continue to inflict this on Victorian ratepayers.”
Reviewed 10 February 2021