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.
Each year, council rate increases are limited by a cap set by the Minister for Local Government. If the rate cap is insufficient for a council’s needs, it can apply to the Essential Services Commission for a higher cap. We are an independent and impartial adjudicator.
Councils are expected to engage with ratepayers and the community. If a council applies for a higher cap, it must explain how the views of ratepayers and the community have been taken into account.
Our Fact sheet – Fair Go Rates system information for ratepayers and the community provides an overview of the Fair Go Rates system, including council obligations, community engagement expectations and the role of the Essential Services Commission.
Our information for councils may be of interest to community members looking for more information on the Fair Go Rates system.