In breaking news, Victoria’s Local Government Minister Melissa Horne has set the rate cap for councils for 2024-25 at 2.75%.
The cap has been set in line with the forecast Consumer Price Index for the next financial year and is a reduction of the cap of 3.5% that applies for the current financial year.
In a media statement, the government said it had accepted the recommendation of the Essential Services Commission in setting the cap.
Ministerial Guidelines have also been released for service rates and charges for collecting kerbside waste and recycling. They stipulate that general benefit services like tree planting and graffiti removal should not be funded by service rates or charges to individual ratepayers.
The MAV has described the rate cap outcome as disappointing, and further evidence that the system for setting the cap requires review.
MAV President David Clark said councils would continue to have difficult discussions with their communities as the rate cap means they will have no relief from the extreme financial pressures of the last four years.
The VLGA has warned that the rate cap announcement will force councils to make difficult decisions that will impact essential service delivery to communities.
President Cr Denise Massoud said, “Councillors find themselves in a ‘no win’ situation as they strive to assist those requiring support and maintain their infrastructure, further exacerbated by the crucial role councils play in bridging gaps left by higher levels of government”.
Cr Massoud said the ability of councils to serve communities is as risk, impacting the very fabric of our localities.