Greater Dandenong Council is yet to decide whether to pass on the full 3.5 per cent rates cap for 2023-’24.
In December, the State Government announced a doubling of the ‘fair go’ rates cap – up from 1.75 per cent last year and the highest setting since it was introduced in 2016.
Last year, Greater Dandenong residential ratepayers were charged an extra $14, paying on average $1491 in rates and waste charges.
Greater Dandenong chief executive Jacqui Weatherill said the council was set to soon decide the coming year’s rates increase.
“Development of the Council 2023-24 Budget and review of the Long-Term Financial Plan is currently underway.
“Therefore the determination of the rate increase in line with the rate cap will be decided by Council soon.”
Local Government Minister Melissa Horne said the Government set the rates cap lower than recommended by the Essential Services Commission due to the cost of living pressures facing rate payers.
The ESC recommended a marginally higher 4 per cent in line with the Consumer Price Index.
“The rate cap for the next financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services,” Ms Horne said.
Each council was responsible for setting their own rates level within the rates cap “based on the needs of the community”.
“Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”
The Fair Go Rates system was introduced in 2016 to curb rates rises.
In the decade before its introduction, council rates rose on average by 6 per cent a year.
