City of Melbourne councillors considering new rates discount — but it would cost ratepayers double the next year
The City of Melbourne is looking to deliver rates relief for property owners in next month’s budget — but ratepayers can expect extra pain next year.
Victoria
Don't miss out on the headlines from Victoria. Followed categories will be added to My News.
Melbourne Lord Mayor Nick Reece looks set to deliver rates relief for property owners in next month’s council budget — but it comes with an expensive catch the following year.
The Sunday Herald Sun can reveal that City of Melbourne councillors are considering providing a temporary rates discount for 2025-26 – meaning no rate increase for next year.
However, any increase in the rates cap applied to City of Melbourne properties for the 2026-27 year would be levied as if there was no discount applied the previous year — essentially delivering what would be close to a double rates rise.
However, if Mr Reece delivered a rates freeze it would mean no rise in 2025-26 and then only allow a rise by whatever is set by the state government’s rates cap the following year.
A Town Hall source said the numbers would likely fall on the side of delivering the temporary rates relief.
“There’s a majority of councillors who ran on a ticket that promised some form of cost-of-living relief around a rates freeze,” the source said.
“But the tricky part is how it is going to be delivered. No one promised to do what is effectively a double rate rise the following year.
“I would warn all Melbourne property owners to keep their rates bill over the next couple of years to easily compare the big jump they will get in 2026-27 in this comes to pass.”
Council Watch president Dean Hurlston said Mr Reece and all elected representatives should deliver on their commitments around a proper rates freeze.
“They didn’t run with giving people a rates rebate or a rates discount – they said they would give ratepayers a rates freeze,” he said.
“A rates freeze is a rates freeze — not a rates discount or rebate.
“The reason is matters is that if its not a rates freeze that is delivered, unsuspecting ratepayers get a double financial hit the following year.”
Mr Hurlston said council bureaucrats regularly pushed accounting tricks to councillors to improve the organisation’s bottom line.
“What we see constantly is an election promise of a rates freeze followed by the bureaucracy undermining the councillor group that results in a rates rebate not a rates freeze,” he said.
“It makes councillors looks liars and it protest the interests of the executive instead of them doing more than less.”
A separate council source said Mr Reece made no objection when the plan for a rates discount was put before him.
“He raised absolutely no issues with the plan from management at all,” the source said.
Mr Reece refused to answer the Sunday Herald Sun’s questions about the rates discount proposal and what it would mean for property owners in the 2026-27 financial year.
The council budget is set to be handed down for community consultation on May 13.
Originally published as City of Melbourne councillors considering new rates discount — but it would cost ratepayers double the next year
‘Web of lies and deception’: Women team up to try and deport Melbourne footballer
Two women who have taken intervention orders against a UK-born footballer are calling for him to be kicked out of Australia to protect other potential victims.
Melbourne school teachers injured breaking up wild brawls
Shocking footage has captured the moment teachers are forced to step in to break up wild schoolyard fights at a troubled school in Melbourne’s northern suburbs.