We provide advice to the Minister for Local Government on the annual council rate cap and assess, then accept or reject higher rate caps proposed by councils.
Our role in council rate capping
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.
Before 31 December each year, the Minister for Local Government sets a rate cap for the next financial year. The minister can set a cap that applies to all councils, a group of councils or a single council.
As required under the Local Government Act 1989, 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.