MANSFIELD Shire Council is set to stay within the Victorian Government’s statewide council rate cap of 2.75 per cent for the 2024-25 financial year.
Announced last month under its Fair Go Rates system, the government measure seeks to keep all councils around Victoria to keep rate increases below 2.75 per cent in an effort to lessen cost of living pressures.
The government accepted the recommendation of the Essential Services Commission regarding the cap, which is equal to the forecast Consumer Price Index for 2024-25.
The rate cap limits the amount all Victorian councils can increase their total revenue from general rates and municipal charges.
Ministerial Guidelines have also been released for service rates and charges for the collection of kerbside waste and recycling from properties.
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Service rates and charges used to fund waste collection and management are not subject to the rate cap.
Mansfield Shire Council Mayor Cr Steve Rabie said council prepares itself to keep rate increases under the cap set by the government.
“Over the past three years council has kept the rate increase at an average of 1.75 per cent, acknowledging the pandemic’s impact and cost-of-living pressures,” he said.
“Each year as part of the budget process, council reviews any rate increase, carefully considering community input, needs, and additional costs from new government regulations.
“Council supports the State Government’s rate cap, and its aim to make councils more financially responsible.
“That aim is reflected in our responsible Council Plan, focusing on getting back to basics, and in our annual budget, where each year we work within the rate cap to get our ratepayers the best bang for their buck.”
The Victorian Government introduced the Fair Go Rates system in 2016 to reduce cost of living pressures and it claims that has been achieved.
In the decade before the introduction of the rate cap, council rates increased by an average of six per cent per annum.
The average rate cap between 2016-17 and 2023-24 was 2.25 per cent.
Councils are able to apply for a higher rate cap if they can demonstrate community support and a critical need for spending on services or projects that require a rate rise above the capped amount.
There were no applications for an exemption this financial year (2023-24), when the cap was set at 3.5 per cent.
