A new rate cap of 3.5 per cent has been set for all councils for the 2023-24 financial year.

Melissa horne, Minister for Local Government, announced the cap today, under the State Government’s ‘Fair Go Rates’ system.

The Fair Go Rates system was introduced in 2016 to ease cost of living pressures on Victorians and encourage sound financial management by local governments.

Council rates increased by an average of six per cent every year before the system was introduced.

“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.