CONSULTATION is under way for a state government initiative to cap council rates.
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Victorian Local Government Minister Natalie Hutchins announced on Friday the release of the Essential Services Commission’s discussion paper on the rates cap.
The government is planning to bring in a rates cap next year and has asked the ESC to carry out a review to develop guidelines for the measure.
Prior to the election, the government made a commitment to cap rates to the inflation level from 2016-17.
As part of its inquiry, the ESC will consult with councils, residents and stakeholders, including the Municipal Association of Victoria and Victorian Local Governance Association.
Following this first round of consultation, the ESC will publish a draft report on the recommendations, with councils, peak bodies and other stakeholders invited to provide further comment.
Ms Hutchins said the purpose of the initiative was about making local rates fairer, and “we encourage communities and councils to be part of the consultation”.
“We’ve asked the Essential Services Commission to help us develop the best framework for our fair-go rates cap,” she said. “The commission will consult across the local government sector, so that our rate capping policy strikes the right balance.”
A final report will be prepared by October 31.