Following a request from Hepburn Shire Council (Hepburn), the Essential Services Commission (the commission) has approved an application for a higher rate cap of 10 per cent for the 2025-26 financial year, 7 per centage points above the 3 per cent cap set by the Minister for Local Government.
The commission approved Hepburn’s proposal on the basis that the financial information presented in the application indicate that Hepburn was unable to fund essential services within the cap set by the Minister for the 2025-26 financial year.
Hepburn’s application made it clear it had considered alternative ways of generating additional revenue, but that service levels would ultimately fall below a level that was acceptable to its community if it did not get approval for a higher cap – a decision that was informed by engagement with its community.
Hepburn also outlined how it has considered affordability issues and its intention to take a proactive approach to supporting vulnerable ratepayers, including by doubling its current pensioner rebate.
Hepburn has not applied for a higher cap in the past and has complied with the rate cap set by the Minister for Local Government each year since the system was introduced.
In assessing the application, the commission considered the legislative criteria and the objectives of the Fair Go Rates system, including whether the proposal promotes the long-term interests of ratepayers and supports the council’s capacity to deliver services and infrastructure.
Thank you to everyone who provided feedback on Hepburn’s application. We appreciate the time and effort that went into the submissions and acknowledge the concerns raised through the process. All submissions were carefully considered and helped inform our decision.
