Independent Commission endorses application for rate cap variation
Published on 12 May 2025
Council has received confirmation from the Essential Services Commission that its application for a 7 per cent rate cap variation has been approved.
The increase reflects an uplift adjustment in rates, resulting in a total rate rise of 10 per cent for the 2025/26 period, which includes the 3 per cent set by the Victorian Government. Council intends to increase rates in line with the Governments rate cap in future financial years.
Mayor, Cr Don Henderson, said that this decision will enable Council to generate an additional $1.36 million in revenue, which will be invested directly into necessary services and infrastructure.
“Combined with $2.53 million in operational savings identified through Council’s work on the 2025/26 draft Budget, this revenue will support the delivery of core services for our community. Without this approval, additional service cuts would have been required.” said Cr Don Henderson.
On average, the one off 7 per cent rate increase equates to an $2.20 per property per week for ratepayers.
“Maintaining financial sustainability is challenging for most councils, especially rural councils like ours. Our current financial position has been impacted by a range of factors including very limited alternative revenue streams to rates, a relatively small and dispersed population and responding to natural disasters. We are a low rates council compared to Victorian averages and have sustained a rate cap well below cost increases and CPI,” said Cr Don Henderson.
“We understand that no one likes paying rates or taxes, however this outcome supports our commitment to maintaining the services and infrastructure our community needs, while ensuring our financial sustainability,” said Cr Henderson.
Council carried out community consultation on a proposed rate cap variation during the development of the Financial Vision in September 2024 before submitting the variation request.
“The application to the Essential Services Commission was not made lightly, and Council has carefully considered all financial levers available, including operational efficiencies, asset rationalisation, and revenue diversification,” said Cr Don Henderson.
With the successful application, Council will double the current additional Hepburn Shire rebate on rate charges for pensioners who qualify under the State Government’s Pensioner Rate Remission Scheme. This initiative will increase Council’s rebate from $21 to $42 to assist pensioners in their rate payments.
The draft Budget, Council Plan and other strategic documents will be considered for community consultation at a Special Council Meeting on Tuesday 13 May,
The new rates will be reflected in the 2025/26 budget and rates notices issued for the upcoming financial year, due for release in July.
The Essential Services Commission stated in its decision:
“Hepburn’s decision to apply for a higher cap of 10 per cent for the 2025–26 financial year is consistent with its long-term planning outlined in its Financial Vision.
By developing its Financial Vision ahead of the planning cycle currently underway, Hepburn has been transparent with its community about its financial situation and been able to have important conversations to ensure the next tranche of plans is principally concerned with financial sustainability, and focuses on the services that are most important to the community.”
Decision: 2025 higher cap applications | Essential Services Commission