Rate cap date change mooted amid unrest

The state government has reiterated it will consider changing the date it announces the annual rate cap amid growing unrest from local councils. 

A report from a government committee examining its rate capping policy has suggested a number of Victorian councils would prefer the date, which is currently in December, to be more streamlined with their council budgets, around May. 

The report from the legislative council Environment and Planning Committee’s inquiry into the rate capping policy recommended the date to be moved forward, while also suggesting the process to apply for a rate cap exemption should be simpler and cheaper for councils. 

City of Greater Bendigo director of corporate performance, Kerryn Ellis, told the Bendigo Advertiser recently that the city had not applied for a rate cap variation as the basis for an application would be a council’s strategic plan or a budget – both of which had not been completed until recently. 

Council, through its chief executive officer, stated in a sub committee inquiry into the state government’s rate capping policy last year that it did not apply for a rate cap variation “based on timing”, among others.

“This was as a result of a number of matters. It was based on timing; there was not enough time for us to go out and effectively engage with the community on getting their support for a rate cap variation,” he said.

Hindmarsh Shire Council (4 per cent), Pyrenees Shire Council  (3.5 per cent), Borough of Queenscliffe (4.5 per cent), Towong Shire Council  (5.55 per cent), and West Wimmera Shire Council (3.5 per cent) have applied for a rate cap variation for the 2017/18 financial year. 

The current rate cap is set at 2 per cent.