Rate cap a big concern for councils

12 September 2024 Full hearing details

South Gippsland Shire Council's Allison Jones gave evidence to the Committee at Traralgon.
South Gippsland Shire Council's Allison Jones gave evidence to the Committee at Traralgon.

Rate capping has emerged as a key concern for Victorian councils as the parliamentary inquiry into local government shifts focus to Melbourne’s outer-suburbs.

The Legislative Council Economy and Infrastructure Committee heard from half of Victoria’s 48 regional and rural councils at public hearings in Camperdown, Bendigo and Traralgon.

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In Gippsland, Bass Coast Shire's CEO Greg Box spoke about the cost pressures impacting their financial sustainability as a high tourism area.

Council representatives also added their voices to calls for a review of the Fair Go Rates system.

East Gippsland and South Gippsland Shires said the rate cap aggravates ongoing challenges in recruiting and retaining staff in their municipalities.

They also described the existing disaster relief process as onerous and emphasised the importance of quick access to funding after natural disasters or extreme weather events.

The councils said service delivery is often driven by community expectations, therefore making it difficult to define the scope of local government.

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Latrobe City Council CEO Steven Piasente said its financial sustainability is affected by more than just rate capping.

The closure of local power stations, industry transition and associated expenses, as well as cost shifting from state and federal governments are all having a big impact on finances.

John Buxton, Trent Anderson, Geoff Gooch and Sandra Grant also appeared before the Committee at Traralgon.

Members of the parliamentary committee next travel to Broadmeadows, Rosebud and Melton to hear from peri-urban councils.

All of the sessions are live broadcast and can be attended in person.

Go to the website for the latest inquiry information, including full witness transcripts, which are usually published a fortnight after a public hearing.