Rate capping

Every year the State Government sets a cap on how much councils can increase their rates and municipal charges. It does not apply to waste charges or the Emergency Services and Volunteers Fund.

The rate cap does not apply to your individual rates bill. It applies to the total overall rates revenue collected by Council. The relative change to your property's general rates each year is determined by the value of your property and may vary from the rate cap.

The rate cap for 2026/27 is 2.75%.

For more information on rate capping, please visit the Essential Services Commission.

How rates are calculated

We assess community needs and the total cost of services and infrastructure when deciding how much money is needed from rates each year.

We calculate the total value of all properties in Darebin. We use the Capital Improved Value (CIV) as a valuation base to calculate rates.
We then work out the portion of the cost of services that Council provides to the community that can be funded by rates under rate capping
We divide this cost by the total value of properties, giving us the rate in the dollar. At Darebin we have differential rating, the rate in the dollars for 2026/27 are:

Rate Classification	2026/27 Rate in Dollar
Residential	0.00176097
Vacant Residential	0.00528293
Business	0.00308171
Vacant Business	0.00704391
Vacant Retail	0.00704391
Mixed Use Occupancy	0.00246537
Cultural and Recreation	0.00154085

For example:

If your residential property has a capital improved value (CIV) of $600,000, this year you will pay $1,056.58 in rates, excluding other charges or arrears:

Capital improved value = $600,000
Residential rate in the dollar = 0.00176097
$600,000 x 0.00181084 = $1,056.58

Your bill includes three elements: