Victorian councils face rising rate debts from misunderstood pandemic deferrals, prompting flexible payment options and a 2.75% cap on hikes.

Victorian councils, especially in Greater Melbourne, are facing rising rates arrears linked to pandemic-era payment deferrals misunderstood as relief. Areas like Port Phillip, Brimbank, Frankston, and affluent Stonnington saw sharp debt increases, with some surges up to 66.6%. To help, the City of Dandenong offers flexible weekly or fortnightly payments, reducing arrears. The state has capped rate hikes at 2.75% for 2026-27, and new guidelines promote flexible payment plans to prevent financial hardship and support community well-being.