Indigo Shire's request for higher rate cap approved

Following a request from Indigo Shire Council, the Essential Services Commission has approved an application for a higher rate cap of 7.54 per cent for the 2025-26 financial year, 4.54 percentage points above the 3 per cent cap set by the Minister for Local Government.

The rate increase is offset by the council’s plan to remove its Environmental Management Contribution charge, which currently funds community waste services. The $801,624 increase in rate revenue is equal to the revenue that Indigo will forgo by removing its EMC charge.

Removing the EMC means Indigo is complying with the Minister for Local Government’s Good Practice Guidelines for Service Rates and Charges, which recommend that community waste services that do not provide a direct benefit to an occupancy should not be funded through service rates or charges.

The application demonstrated that Indigo has taken steps to ensure its waste services are cost efficient, and that it has appropriately considered opportunities for reprioritising expenditure and alternative funding options.

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.

Further information about local council rate caps can be found here.