In 2016, the Victorian Government introduced rate capping to restrict the amount that councils can raise their rates each year. The Minister set the initial rate cap in 2016 at 2.5 per cent, and in 2017, the Minister reduced the rate cap to 2 per cent.
In 2018, a council's overall rate revenue must not be more than 2.25 per cent higher than last year, unless they receive an exemption.
The Municipal Association of Victoria have put together a handy video to help ratepayers understand how the rate capping system works and what it means for Victorian councils.
Watch the video below now:
How does rate capping work? from MAV on Vimeo.
Find more information at the MAV website.