Rate capping

 The Victorian Government's Fair Go Rates system limits the amount councils can increase general rates each financial year. The Minister for Local Government sets the rate cap annually, and for the current financial year the cap has been set at 2.75%.

Probably not.

The 2.75% rate cap does not apply to individual rates notices. It also does not apply to waste charges or the Fire Services Property Levy. The cap applies only to general rates revenue, meaning it limits the average increase in rates income that Council can collect across all properties.

Council calculates rates by dividing the amount of revenue required to fund services by the total value of rateable properties in the shire.

As a result, the change to your rates may be higher or lower than 2.75%. This depends on:

• The classification of your property (for example, residential, farming or commercial).
• How rates are distributed across different property categories.
• Changes in your property's valuation compared with other properties in the shire.

While Council's total general rates revenue will increase by no more than 2.75%, individual rate increases will vary. Property values and property types determine how that increase is shared across the community.

For more information, see our page on how we calculate rates.

No.

Council does not receive more rates revenue simply because property values increase. The amount of rates revenue Council can collect is determined through the annual budget process and is subject to the Victorian Government's Fair Go Rates cap.

Property valuations are used to determine how the total rates revenue is shared between properties, not how much revenue Council receives overall. Generally, properties with higher values pay a larger share of rates than properties with lower values.

All rateable properties are revalued annually as at 1 January. These valuations are undertaken by qualified, independent valuers and reflect changes in the local property market.

An increase in your property's valuation does not necessarily mean your rates will increase by the same proportion. What matters is how your property's value has changed relative to other properties across the shire.

For more information, see property valuations.