How does rate capping affect my rates?

Rate capping was introduced by the Victorian Government in 2016. The rate cap limits the total amount a council can increase its rates each year based on the amount it levied in the previous year. 

The rate cap applies to a council’s total revenue and not individual properties. In many cases an individual rate bill may increase or decrease by more (or less) than the cap amount.  

This year, Council has adopted the rate cap of 3.5 per cent set by the Victorian Government. This means that total rates revenue will increase by this amount. Individual property rate changes will vary and may be higher or lower than the rate cap depending on property valuation movements and changes to rating differentials. The cap applies to Council’s overall rates income, not individual assessments. 

The Rate Cap does not apply to waste charges or the Fire Services Property Levy. 

For more details on property valuations 

For details on rate capping visit Local Government Victoria – Fair Go Rates. 

The 2023 general revaluation, carried out by the Valuer-General Victoria, has resulted in increases to industrial, farm and rural residential property valuations — 23.10 percent, 35.36 percent and 16.46 percent respectively. Alternatively, residential and commercial property valuations have increased by 8.01 percent and 8.41 percent respectively.  

The combined effect of 2023 valuation changes will reduce the share of rates paid by residential and commercial properties and moves a higher proportion to industrial, farm and rural residential properties. Increases in property values do not result in increased rate revenue for Council as total rates revenue collected is capped. Valuation changes simply change the way that the amount being collected is split across the different rate categories.