We administer higher council rate caps, produce council compliance reports and conduct inquiries and reviews that promote sustainable outcomes for councils and the community.
Local government
As required under the Local Government Act, we:
- assess, then accept or reject higher cap applications
- undertake council compliance reports, provide advice to the Minister for Local Government on the annual rate cap and other matters
- develop guidance and resources for councils and undertake studies and reviews as required
- report on outcomes in the sector following the introduction of rate capping.
Access resources to help councils comply with rate caps, and view our reporting on compliance.
The annual local council rate cap sets the maximum amount a council can increase general rates and municipal charges.
View information on the higher cap applications we receive and our decisions to accept or reject those applications.
We report on rate capping outcomes and identify any impacts or trends that might be emerging across the local government sector.
View research and findings that promote the long-term interests of ratepayers.
Featured work
We have released our latest council rate cap compliance report, which found that 77 of 79 councils complied with the average rate cap or approved higher caps for 2025-26.
The Essential Services Commission’s annual Council Rate Cap Compliance Report shows two of the state’s 79 local councils exceeded the three per cent rate cap set by the Minister for Local Government.
The Essential Services Commission has released its 2025 Local Government Outcomes Report, which shows most local councils remain in good financial health and ratepayers continue to benefit from council rate caps.