Rate capping

In 2016, the Victorian Government introduced rate capping, a system that determines the amount a council can increase rates.

For 2025/26 the State Government applied a rate cap of 3%.

To help fund our works and services program, a 3% increase has been applied to the 2025/26 budget.

How is the rate cap calculated?

If the total rate revenue collected in the 2024/25 financial year was $10,000,000, the maximum that can be collected in 2025/26 would be $10,300,000. That’s 3% more than the previous year.

The rate cap does not apply to:

  • waste charges
  • the Emergency Services and Volunteers Fund 

Could my rates rise by more than 3%?

Yes, they could. The rates you pay is impacted by any rate increase and your property’s Capital Improved Value:

  • If the market value of your property increases to more than the City of Stonnington average, your rates will increase by more than 3%.
  • If the market value of your property increases to less than the City of Stonnington average, your rates will increase by less than 3%.

Please note: A decrease in the market value of your property does not necessarily mean a reduction in your rates.

More information on rate capping

To learn more about rate capping, visit the Vic Councils website or watch the Victorian Government's 'Fair Go Rates System' video.