We provide the minister with advice on the average rate cap for each financial year.
Our advice on setting council rate caps
Each year, the Minister for Local Government sets the rate cap that specifies the maximum councils’ can increase rates for the forthcoming financial year. The minister can set a cap that applies to all councils, a group of councils or a single council.
Our advice to the minister includes:
- a recommendation for any adjustments to be applied to consumer price index in setting the cap for all councils, a grouping of councils or any individual council
- the rationale for any adjustment
- a preferred option if we recommend more than one option.
Councils can choose to submit a higher cap application to us if the rate cap does not meet their needs.
Our latest advice to the Minister for Local Government
In this letter to the minister, we recommend the average rate cap be set equal to the December CPI forecast for 2020–21 from the Department of Treasury and Finance. We also recommend that a uniform cap continue to apply for all councils in 2020–21.