Concerned over increasing rates and the need to alleviate cost of living pressures to deliver value for all Victorians, the State Government commissioned a review by the Essential Services Commission (ESC) into a 'rates cap'.
As a result, in October 2015, the Minister for Local Government Natalie Hutchins announced the design of the Fair Go Rates system to take effect from 2016-17. This system caps rates increases to a figure based on the Consumer Price Index.
Over the past 10 years, average Victorian rates rose by six per cent every year, putting pressure on households.
The Fair Go Rates system limits the amount of rates that a council can levy each year.
The legislation required to give effect to the Fair Go Rates System
in the 2016-17 financial year was passed by the Victorian Parliament in
November 2015 and came into operation on 2 December 2015.Following the passage of required legislation the Fair Go Rates system will take effect in the 2016/17 financial year.
Councils will be advised of the cap in December 2015 to ensure they have time to account for it in their budget considerations.
The State Government is committed to ensuring Victoria's 79 local councils deliver quality, good value and sustainable services and infrastructure, and ensuring our local government sector is operating as effectively as possible.
How can councils meet their financial requirements to deliver quality services and infrastructure?
accountable for establishing priorities for service provision and expenditure
in their municipal areas, in consultation with their local communities.
Councils will continue to be encouraged to explore a wide range of funding options and adjust their costs if needed.
thoroughly undertaken internal processes of review and prioritisation, a
council is in a position of having to potentially cut a service or not proceed
with a project that is highly valued by the community, the council has the
option under the Fair Go Rates System of making a case to the Essential
Services Commission for a higher cap to accommodate the required expenditure.
budgeting for projects and services, the government encourages councils to be
innovative and look for the best value. For information about how projects and
services are funded in your area, please contact your local