Read reports that determine whether councils have complied with the relevant rate cap when they set their rates for each financial year.
Council compliance reports
Overview
The Minister for Local Government sets local council rate caps. The cap is the maximum amount a council can increase its general rates and municipal charges within a financial year.
Each year, we produce a compliance report that outlines whether councils have complied with their council rate cap when they set their rates for each financial year.
Latest council compliance report
In our 2025–26 report, we found that 77 of 79 councils complied with the average rate cap or approved higher caps. Two councils did not comply with the average rate cap:
- Alpine Shire Council was materially non-compliant with an average rate increase of 3.96 per cent.
- Hindmarsh Shire Council was immaterially non-compliant with an average rate increase of 3.05 per cent.
Read our media release about the release of this report.
Key findings from our 2025-26 compliance report
Alpine Shire Council and Hindmarsh Shire Council were non-compliant with the rate cap
Two councils were non-compliant with the average rate cap of 3.00% for 2025–26. The remaining 77 councils were compliant with the rate cap or approved higher caps.
Most councils increased their rates by or near to the rate cap
Two councils (Ballarat City Council and Bayside City Council) did not increase their average rates in 2025–26. All other councils set their rate increase at or near their applicable rate cap.
Waste service rates and charges continue to grow
There was an increase in uncapped waste service rates and charges revenue in 2025–26, with councils budgeting an annual increase of 5.9 per cent per rateable property. Eight councils introduced new service charges to recover the costs of waste services.
The change in your council rates may not be the same as the rate cap
A council can comply with the rate cap even if individual ratepayers experience rate increases higher than the rate cap. View more information for ratepayers on this topic.