Rate capping

The rate cap applies to the percentage increase in a council's average general rate and municipal charge, find out how this works in Darebin.

Rate capping was introduced by the State Government from 2016/2017 financial year.

Under this new system, Victorian councils cannot increase their rates revenue above those set by the Minister for Local Government each year without seeking an exemption.

For 2019/2020 financial year, the State Government has capped the rate increase at 2.5%. This means, councils can only increase the total revenue they raise through rates by up to 2.5% more than the previous year.

We have elected to apply the 2.5% increase rather than seek an exemption from the capped rate for this financial year.

How general rates and charges are calculated

Your rates bill comprises two elements;

  • General Rates charge, and
  • Fire services levy

The 2.5% rate cap does not apply to the fire services levy or for property revaluations.

Your bill may be more or less than you expected because the 2.5% rate cap applies to the overall rate revenue collected by each council, not your individual property.

Watch the How does rate capping work? video for more information.