Rate Capping

This year, Council rates have been capped at 2..25 per cent, as determined by the State Government’s new ‘Fair Go Rates System’. This rate cap is not a rate cap for each individual property, but rather a rate cap on the total revenue for the City.

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 2..25 per cent 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.

You can watch the Municipal Association of Victoria short film illustrating the State Government’s ‘Fair Go Rates System’ below.

How does rate capping work? from MAV on Vimeo.