Posted by Colin Weatherby 900 words
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This article follows an earlier piece in The Age, ‘Plan to cap council rates at inflation could lead to service cuts and job losses in Victoria’ on 23 February 2015. Both articles are about the planned legislation in Victoria to restrict councils to rate increases at or below the Consumer Price Index from 2016 unless they seek an exemption from the Essential Service Commission. Some councils have already started to cut jobs to reduce expenditure ahead of rate capping. Others are forecasting cuts to their services and reduced maintenance or renewal of community infrastructure.
This is occurring at the same time that the State government is shifting more costs onto councils and national grants to councils are being frozen. I have previously posted on rate capping (see here , here and here). As you can imagine, rate capping is dominating talk within local government circles. Continue reading