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Victorian Council Rate Cap Set At CPI Again

18 December 2016

The Andrews Labor Government has set the cap on Victorian council rate rises at 2 per cent, matching the Consumer Price Index (CPI) for 2017-18.

The cap was also set at CPI last year – the first year Victorian councils operated under a rate cap – officially ending the uncontrolled rate rises seen across the state over the past 10 years.

Minister for Local Government Natalie Hutchins accepted the advice of the Essential Services Commission that there be one cap across the state, but did not accept the advice which recommended a cap of 2.15 per cent.

In line with the Labor Government election commitment, it was decided the cap will be the same as CPI as forecast by the Department of Treasury and Finance.

For more information on Fair Go Rates, including the advice of the ESC, visit www.delwp.vic.gov.au/fairgoratesExternal Link

Quotes attributable to Minister for Local Government Natalie Hutchins

“In the decade before we introduced Fair Go Rates, council rates increased by an average of 6 per cent per annum. This has now stopped, making things fairer for ratepayers.”

“Victorians have told us they want more of a say in council decision-making, and now is the time for councils to speak with their communities about their budgets for next year.”

Reviewed 19 August 2020

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