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 that the City of Stonnington (or any council) can collect over a year.
How is the rate cap calculated?
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. That’s 2.5 per cent more than the previous year.
The rate cap does not apply to:
Could my rates rise by more than 2.5 per cent?
Yes, they could.
It’s important to keep in mind that the rate cap does not mean rates for each individual property will all increase by exactly 2.5 per cent. The percentage rate increase for individual properties is determined by the change in value for each property. That means if your property value has increased your rates may go up by more than 2.5 per cent.
More information on rate capping
To learn more about rate capping, watch Municipal Association of Victoria's short film explaining the State Government’s ‘Fair Go Rates System’.