Fair Go Rates system

The Victorian Government established the Fair Go Rates system to limit the maximum amount councils can increase rates in a year.

Under the Fair Go Rates system, we:

Rate caps help ensure councils deliver sustainable outcomes

Rate capping was introduced to promote the long term interests of ratepayers and the community in relation to sustainable outcomes in the delivery of services and critical infrastructure. It aims to ensure that a council has the financial capacity to perform its duties and functions and exercise its powers.

Before 31 December each year, the Minister for Local Government sets a rate cap for the next financial year,  which 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 is insufficient for a council’s needs, the council can apply to us for a higher cap. Councils can apply for up to four years of higher caps at a time.

Key dates

Date Description
14 February 2018 Submission close for the setting a local government efficiency factor
March 2018 Final proposal on setting a local government efficiency factor
1 February – 31 March 2018 Councils submit higher cap applications
February – May 2018 Commission assesses higher cap applications
By 30 June 2018: Councils formally adopt budgets
30 September 2018 Annual compliance information due to the commission
November 2018 Commission publishes annual compliance report


Essential Services Commission