City of Melbourne locals could fork out up to 3.5 for every cent much more for their council premiums subsequent economical yr, immediately after the Victorian Govt doubled the price cap for 2023/24.

The cap, which restrictions the full quantity a council can raise its charges each yr, was established at 1.75 per cent this financial 12 months, to “help relieve price tag of residing pressures for Victorians”.

Even so, the government has opted to increase that figure from July 1.

Future year’s figure is however below the 4 for every cent advice from the Important Expert services Commission (ESC), in line with the Shopper Price Index (CPI).

“The charge cap for the future fiscal calendar year requires into account higher inflation and the want to safeguard Victorians from uncontrolled level hikes, when making certain councils can continue to produce very important neighborhood providers,” community govt minister Melissa Horne mentioned. 

“Each council is responsible for setting charges within the charge cap primarily based on the requires of their local community.”


The new determine signifies the typical community property price quantity — must the Metropolis of Melbourne enact a increase in line with the cap in its future funds — will increase by 3.5 for every cent.


The charge cap applies to a council’s complete income and not individual homes, and an particular person amount monthly bill may maximize or lessen by far more, or considerably less, than the cap volume.  

On the other hand, there was some annoyance from councils about what the Municipal Affiliation of Victoria (MAV) explained as a “modest” improve.

The City of Melbourne’s finance portfolio lead Cr Philip Le Liu advised CBD News that, against  an underlying inflation of 7 for each cent throughout the economic climate, the cap was low. 

“The fee cap set by the condition authorities for the future fiscal calendar year is properly down below the price of inflation, which has viewed the cost of offering expert services to the local community increase noticeably,” he explained. 

“Council will keep on to monitor cost pressures and will consider prices, possible for value constraints and other income steps as component of our yearly spending plan scheduling method in the coming months.” 



MAV president David Clark called for an independent evaluate of the way in which the cap is allocated.

“Each year councils devote amongst 20 to 40 for every cent of their budgets on new infrastructure, be that roadways, aquatic amenities, streetscapes, or playgrounds and parks,” Cr Clark reported.

“In the present yr costs for these performs have escalated in the buy of 35 for each cent, a thing the charge cap does not deal with, consequently the will need for the assessment … councils are not elaborate, they raise funds from the group and spend it all back in the local community. Less cash in excess of time indicates fewer companies that we can supply.”

Fee capping, as component of the Honest Go Fees procedure, was launched in 2016 to “ease cost of dwelling pressures on Victorians” and “encourage sound monetary administration by community governments”. •


Graphic credit score: Heidi Fin, Unsplash.

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