East Gippsland Shire Council has welcomed confirmation it has complied with the Victorian Government’s rate cap for the 2025–26 financial year, following the release of the latest Council Rate Cap Compliance Report by the Essential Services Commission (ESC).
The report shows 77 of Victoria’s 79 councils met the requirements of the Fair Go Rates system, either staying within the average rate cap or operating under an approved higher cap. For the 2025–26 rating year, the Minister for Local Government set the average rate cap at 3.0 per cent, a threshold East Gippsland Shire Council remained well within.
Mayor Cr Jodie Ashworth said the result reflected careful financial planning and a focus on supporting the local community during ongoing cost-of-living pressures.
“We’ve taken a careful and considered approach to this year’s budget, keeping the general rate rise to 2.0 per cent — a full percentage point below the Victorian Government’s 3.0 per cent cap,” Cr Ashworth said.
“This was a deliberate decision to help ease pressure on households and businesses, while continuing to deliver the services and infrastructure our community relies on.”
Cr Ashworth said the independent confirmation from the Essential Services Commission reinforced council’s commitment to responsible financial management and compliance with state requirements.
Council noted that while the overall general rate increase was kept below the state cap, individual rate notices may vary depending on property valuations and the application of differential rates.
The ESC’s compliance report provides independent oversight of councils’ adherence to the Fair Go Rates system, which was introduced to limit annual rate increases and improve transparency for ratepayers.
More information about rate capping, compliance reporting and how it affects local councils is available on the Essential Services Commission website.
