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East Gippsland Shire Council has, for the second consecutive year, kept rate increases below the Victorian Government cap and CPI.
In releasing its 2026/27 Budget this week, Mayor Cr Jodie Ashworth said Council has worked to limit cost-of-living pressures and financial impacts on businesses while continuing to deliver the services and infrastructure our communities rely on.
“The average rate increase is set at 2.5%, below the State-imposed cap of 2.75% and well below inflation, which is currently around 4.2–4.9%,” Cr Ashworth said.
“Rates are necessary to keep our core services running. Our teams work around the clock to deliver essential services – from waste and recycling collections to roadwork and street cleaning, libraries, public health and safety, and keeping our parks and gardens in great shape for everyone to enjoy.
“Our demographics and geography often require duplication of services to ensure all communities are supported. This comes at a cost that must be balanced against our commitment to support communities.”
Rates make up 51% of the revenue Council receives to deliver services to our community.
Cr Ashworth said Council’s approach to rate setting recognises the cost-of-living pressures faced by many in our community.
“Support is available for ratepayers experiencing financial hardship, including payment arrangements and relief options. We encourage anyone having trouble to contact us to discuss the support available.”
The Victorian Government introduced rate capping for local government in 2016. The cap sets the maximum overall increase a council can apply to general rates and the municipal charge each year.
For 2026/27, the Victorian Government has set the rate cap at 2.75%. This means total income raised from general rates and the municipal charge cannot increase by more than 2.75% compared to the previous year.
“We have set the rate increase for 2026/27 at 2.5%, which is below the rate cap and well below current inflation expectations. This decision reflects our recognition of ongoing cost-of-living pressures.
“In 2026/27, $483,000 will be provided in pensioner rate rebates, in addition to the State Government concession, to assist eligible pensioners with rising living costs.”
“We’ve worked hard to strike the right balance – keeping rates as low as possible while still investing in roads, community facilities and the services that matter most to our residents,” Cr Ashworth said.
From 2027/28 onwards, rates revenue is assumed to increase in line with conservative CPI assumptions. The Financial Plan assumes annual growth of 1% in the rates base and in demand for Council services, in line with recent years.
Rates are calculated using the Capital Improved Value (CIV) of each property. Council does not control the valuation process, with property valuations conducted annually by the Valuer-General Victoria.
Cr Ashworth said Council is mindful of the impact that annual property valuation movements can have across different property classes and takes this into account each year when setting differential rates.
“For 2026/27, the Budget is designed so that, on average, property owners across all classes experience a similar percentage rate increase of 2.5%.”
Council uses a differential rating system. This means there is a different rate in the dollar for different property types or categories.
User fees support cost recovery
Most user fees will increase by around 2.75% in 2026/27. These increases reflect Council’s annual review of fees and charges to support appropriate cost recovery, as well as ongoing cost shifting from other levels of government in areas such as animal registrations and waste services.
Cr Ashworth said an example is where the average increase in animal registration fees of between $3.50–$20 a year (+13.5%).
“The Victorian Government has increased the statutory payment required to be made for every dog and cat registration or renewal by over 90%. We have not passed on the full amount as we have committed to staging the increases to reduce the burden on pet owners.”
Likewise, we have seen cost-shifting with waste fees and related charges, Cr Ashworth said.
“Waste services operate on a full cost-recovery model. A combination of the increase in the Victorian Government’s landfill levy imposed on Council as well as other compliance cost increases, and escalating fuel prices have had an impact on waste fees.”
All fees and charges are outlined in the Budget. The adopted 2026/27 Budget and supporting fact sheets will be available on Council’s website and at service centres and libraries.