January 2nd, 2025Council rate increases again capped at CPI: Hepburn seeking variation

Council rate increases in the state of Victoria will again be capped at the forecast Consumer Price Index for 2025, continuing the state government’s drive to reduce pressures on household budgets.

The three per cent rate cap for the next financial year is part of the government’s Fair Go Rates System.

The rate cap limits the amount Victorian councils can increase their total revenue from general rates and municipal charges.

Councils may apply to the Essential Services Commission for a higher rate cap if they can demonstrate a critical need for spending on services or projects that would require a rate rise above the capped amount.

Contending with financial pressures, the Hepburn Shire Council last year, prior to the election of the current council, decided to apply to the Essential Services Commission for a 10 percent rate cap variation, including the applicable rate cap for the 2025/26 financial year.

The council, in September, issued a statement confirming that it will begin the process of making an application to the Essential Services Commission, with the application required to be submitted between February 1 to March 31 this year.

The ESC must then notify the council of their findings within two months of receipt of the application.