What is rate capping?
Rate capping was introduced by the State Government in 2016. Each December, the Minister for Local Government announces the rate cap for the following financial year.
Rate capping limits the amount by which councils can increase rates in a year without seeking additional approvals. The Rate cap for 2024-2025 will be 2.75 per cent. The rate cap is applied to the total annualised rates income from the previous year, and is not the percentage increase for each individual rateable property.
In comparison, the previous rate caps (based on CPI) have been:
| Year |
Rate cap (%) |
| 2024-2025 |
2.75% |
| 2023-2024 |
3.5% |
| 2021-2022 |
1.5% |
| 2020-2021 |
2.00% |
| 2019-2020 |
2.5% |
| 2018-2019 |
2.25% |
| 2017-2018 |
2.00% |