The annual local council rate cap sets the maximum amount a council can increase general rates and municipal charges.
Annual council rate caps
Before 31 December each year, the Minister for Local Government set the local council rate caps for the next financial year. The rate cap is the maximum amount a council can increase general rates and municipal charges. The minister can set a cap that applies to all councils, a group of councils or a single council.
If the rate cap does not meet a council’s needs, the council can submit a higher cap application for up to four years of higher caps at a time.
We administer council rate caps by:
- providing the minister with advice on setting the rate cap for council rates
- assessing, then accepting or rejecting higher cap applications.
The 2020-21 rate cap is two per cent
For the 2020-21 financial year, council rate rises are capped at two per cent in line with the period's Consumer Price Index (CPI) forecast.
Approved higher rate caps
Three councils have approved higher rate caps that apply in 2020-21.
|Council||2020-21 rate cap||Year approved|
|Warrnambool City Council||4.5%||2019|
|Towong Shire Council||5.55%||2017|
|West Wimmera Shire Council||3.5%||2017|
In 2020, no councils applied for a new variation to the 2020-21 rate cap.
Previous rate caps
Since the introduction of rate capping in 2015, the rate caps have been:
We provide the minister with advice on the average rate cap for each financial year.
We assess, then accept or reject higher rate caps proposed by councils.