How does rate capping work?

Watch the Municipal Association of Victoria (MAV) video, which explains how rate capping works.

A council’s average rates bill must not be more than the rate cap set by the minister in line with the consumer price index.

The overall rates revenue collected by council can not exceed the rate cap.

However, the amount each property owner pays is calculated based on the value of their property.

Council does not get more revenue when property values rise. Total Council rates are capped.

Some rate payers will pay less than the rate cap, others will pay more. But the overall rates collected by Council won’t exceed the rate cap unless they are granted an exemption.

Your rates help maintain and build community assets and helps us deliver over 150 services to the community.