Strategic and operational flexibility for Councils

Stonnington is advocating for support to improve community representation and governance in our decision-making.

Our vision

Stonnington Tomorrow is our Council Plan for 2025 to 2029. It outlines our vision for community representation and governance in decision-making. This includes:

  • financial sustainability
  • transparency
  • accountability
  • community-centred decision-making
  • excellent customer experiences.

Like many councils, Stonnington faces growing financial pressures due to rising costs and limited revenue flexibility. We will strengthen our revenue base where we can, manage assets and services strategically, and ensure investments deliver long-term benefit.

Read our Strategic and operational flexibility for councils fact sheet(PDF, 285KB).

The need for partnership

We review services to ensure they are efficient, cost-effective and responsive to community needs. However, many financial and operational settings are out of our control.

Our financial capacity continues to be eroded by high State Government compliance costs and other cost shifting. This adds an estimated $20 million-plus to our annual cost base, revenue limitations, and external cost pressures. Stonnington is now in a more complex environment with higher performance and risk management standards.

Policy asks

State Government metrics

We ask the State Government to change how it measures the financial capacity of local government, with a focus on future funding capacity and flexibility. This will help councils to achieve growth targets and regulatory requirements while delivering, for example:

  • future climate resilience and adaptation measures
  • fair access policy outcomes
  • emergency management responsiveness
  • liveability outcomes
  • required community infrastructure levels.

Rate cap adjustment

We ask for a one-off rate cap adjustment to recognise that the 2026 cap is significantly below inflation. Inflation will likely be in the range of 5 per cent by the end of 2026.

Alternative rate-capping models

We ask that the State Government examines the merit of alternative rate-capping models.

For example:

  • Allow Councils with low relative rates to re-base rates to, for example, a median level with like councils.
  • Use a calculated Local Government Cost Index as a more appropriate measure for setting future rate cap advice to the Minister.

Good Practice Guidelines

The State Government should confirm that the Good Practice Guidelines for Local Government Service Rates and Charges are not legally enforceable. They should be optional for councils that have clear policy positions on service delivery charges.

Cost-shifting review

The State Government should undertake a review of cost-shifting to local government, to explore the:

  • impact on service delivery
  • cost of regulatory compliance
  • other external cost pressures faced by local governments.

State tax collection costs

Local governments should be fully reimbursed for the cost of collecting state taxes. Consistency, fairness and transparency should apply to the interest charge on rates notices for Council rates and the Emergency Services and Volunteer Levy.

Review of regulatory burdens

The State Government should review the impact of regulatory burdens on local government service delivery. An associated red tape reduction will allow councils to best serve their communities.

Review of statutory fees

The State Government should review statutory fees, such as those for breaches of the Planning and Environment Act and Road Safety Act. This will help meet community expectations and to reflect the cost to councils.

Commit to review of Fines Victoria

We ask the State Government to commit to a review and improvement plan for Fines Victoria.

Stonnington has more than $44 million in outstanding aged debts, mostly parking infringements. This is an unacceptable impact on rate-capped councils who rely on fines revenue to help fund critical community services.

More information

For more information, please visit our Advocacy page.