Rate capping

State Government has set a two percent rate cap, which the City has met.

This cap applies to the average annual increase of rates and charges, meaning your rates won’t necessarily change by two percent - the percentage can differ based on:

  • the valuation of your property relative to the valuation of other properties in the municipality
  • the application of any differential rate by the City
  • the inclusion of other rates and charges not covered by the State Government’s rate cap, including the waste service fee.

The capping of Council rates - The complex policy is explained below.

The components of your annual council rates bill

General rates & municipal charges
(capped at 2.25%)

A council can only raise its general rates and charges above the 2.0% cap if it has consulted with its community and been granted permission by the Essential Services Commission.

This year, six Victorian councils were granted a rate cap variation.

Waste charges

The waste charge pays for kerbside waste collection, recycling, waste disposal and State Government landfill levy - a charge the council must pay when depositing waste at landfill.

Waste charges are not subject to the rates cap.

Fire services property levy
(set by State Govt)

All Fire Services Property Levy money collected by councils is passed onto the State Government to fund fire agencies.

This charge is set by the State Government and is not subject to the rates cap.

Your bill may be more or less than you expected because the 2.0% rate cap applies to the overall rate revenue collected by each council, not your individual property.

The 2.0% rate cap does not apply to waste charges, the fire services property levy or property revaluations.

How general rates and charges are calculated

Council rates
(e.g. $10 million)

Combined value of all rateable properties
(e.g. $40 billion)

"The rate in the dollar"
(e.g. 0.004)

Market value of your property
(e.g. $320,000)


Your general rates
(e.g. $1,280)

Page last updated: Friday, 2 July 2021