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Victoria limits local council rate hikes to 2.75% for 2025-26 to ease household costs, citing inflation forecasts.
Victoria has capped local council rate increases at 2.75% for 2025-26, down from 3% last year, to help households manage rising costs.
The cap, tied to inflation forecasts, continues a trend since 2016 that has kept average annual increases at 2.3%, well below the pre-2016 average of 6%.
Councils can seek higher increases if they prove urgent needs, but local officials argue CPI forecasts don’t reflect rising construction and service costs, warning of potential service declines without a dedicated cost index.
The government says the cap supports affordability while allowing basic services, and has revised waste charges to better match actual costs.
An unexpected inflation spike in November has raised concerns about forecast accuracy.
Victoria limita los aumentos de las tasas de los consejos locales al 2,75% para 2025-26 para aliviar los costos de los hogares, citando las previsiones de inflación.