Rate capping

For the 2019-20 financial year, the State Government applied a rate cap of 2.5 per cent to Council rates. 

The rate cap determines the maximum increase in rate revenue the city can collect over the previous year.

For example, if the total rate revenue collected in the 2018-19 financial year was $10,000,000, the maximum that can be collected in 2019-20 would be $10,250,000 (or 2.5 per cent more than the previous year).

The rate cap does not mean rates for each individual property will increase by 2.5 per cent.

The percentage rate increase for individual properties is determined by the change in value for each property.

For example, if your property value has increased your rates may go up by more than 2.5 per cent.  If the value of your property has decreased, you may pay less.

In summary

  • the State Government determines the rate cap percentage increase
  • in 2019-20 the rate cap was 2.5 per cent
  • the rate cap determines the maximum increase in rate revenue the city is permitted to collect
  • the rate for individual properties may be more or less than 2.5 per cent, depending on an increase or decrease in property value
  • the rate cap does not apply to:
    • waste charges
    • special rates
    • the Fire Services Property Levy.  The FSPL is collected by Council on behalf of the State Government, to support the State's fire services.

How does rate capping work?

To learn more about rate capping, watch Municipal Association of Victoria's short film explaining the State Government’s ‘Fair Go Rates System’.