Rate capping

In 2016, the Victorian Government introduced rate capping to restrict the amount that councils can raise their rates each year. The rate cap is set each year by the Minister for Local Government.

The rate caps have been:
Financial year Rate cap
2019-20 2.5%
2018-19 2.25%
2017-18 2.0%
2016-17 2.5%

The State's independent umpire, the Essential Services Commission, can grant councils an exemption to raise rates above the cap. Information and outcomes on higher rate cap applications submitted by councils is published by the ESC.

The rate cap applies to the percentage increase in a council’s average general rate and municipal charge. It does not apply to each property owner's rates notice.

Components of your annual rates bill

The rate cap applies to general rates and municipal charges. It does not apply to waste charges or the State’s fire services property levy.

Councils don't collect extra rate revenue as a result of property revaluations.

The video below details how rate capping works, however it was created in 2016 and the figures have since changed.