The Victorian councils with the biggest rate increases

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Residents in the picturesque Murray River town of Swan Hill are facing a spike in residential rates. Picture: Supplied

Rate capping will not stop some Victorian homeowners being slugged up to $100 more in council property tax in 2025.

The Herald Sun can reveal that more than a third of ratepayers across Victoria’s 79 local government areas will face average council rate bill increases for residential properties above the 2.75 per cent limit mandated by the state government.

Regional residents will be hit hardest including Swan Hill ratepayers who will be charged an average of $100 (6.2 per cent) more, while Pyrenees ratepayers in Victoria’s west will have to pay an average of $84 (8.7 per cent) more.

Ratepayers in the Yarra Ranges are facing an average increase of $98 after residential rates increased by an average of 5 per cent.

Melbourne ratepayers, who usually have the highest average rate bills will face an average increase of $40 (3.37 per cent).

Yarra Ranges residential ratepayers including those in Healesville will have to find an average of $98 more for their council rates in 2025. Picture: supplied

Not all ratepayers will be charged more in 2024-25.

About 14 local government areas will see bills slashed despite rate increases.

Golden Plains homeowners will be charged an average of $95 (5.9 per cent) less and Moira ratepayers will pay an average of $54 (4.72 per cent) less.

Ratepayers in just one metropolitan municipality – Greater Dandenong – will see the average residential rate reduced – by 68 cents.

Council rates are calculated using the Capital Improved Value (CIV) or total market value of a property including land and all improvements, such as buildings.

Properties are valued every year by the Valuer General.

Most councils add service fees, including waste and municipal charges, to their annual rates notice.

Councils often use different rates for different property types including residential, commercial, industrial and farmland.

Others have considered adding more controversial differential rates to the mix, including Merri-bek Council wants to charge ratepayers with investment properties double that of owner occupiers, while Mornington Peninsula Shire considered making homeowners without solar panels fund a 20 per cent discount for those that make the switch.

Ratepayer group Council Watch said many ratepayers were not aware that rate caps were applied across local government areas, not individual properties.

“Individual property owners can and often do face much higher increases than the cap,” president Dean Hurlston said.

Ratepayers Victoria president Dean Hurlston. Picture: Kiel Egging.

However, he said while rate capping was “not perfect” it was the only mechanism that “prevents fat cats from gorging on your wallet”.

“Right now Victorian parliament is hearing submissions from local government desperate to abolish rate capping.

“Every Victorian must push back against any attempts by any political party to increase local council revenue.”

Swan Hill council Corporate Services director Bhan Pratrap said CIV for residential properties had increased significantly by 10.6 per cent reflecting low stock and housing availability.

“Another factor adding to the 6.2 per cent increase is the $102m reduction in value of some properties within our irrigated farming and industrial rating categories,” Mr Pratrap said.

“As the 2.75 per cent rate cap applies to our total rates raised, any significant decrease to a rating category sees some of the rating burden shared across all the rating categories.”

Ratepayers across Melbourne and Victoria are facing a spike in residential rates. Photo - Visit Victoria/NGV

A Golden Plains Shire spokesperson said individual rates notices for residents could vary from year to year based on factors including capital improved value and the rate in the dollar set by the council for each type or class of land.

“Rate revenue in Golden Plains Shire includes large farm land properties, and movement within these properties from sales and other activities can impact the distribution of rate revenue across the type or class of land to ensure compliance with the rate cap,” the spokesperson said.

Pyrenees Shire has nine different rates to provide an “equitable allocation” across the council’s different property types.

Chief executive Jim Nolan said increases between each rate could vary significantly depending on valuation movements.

“It is possible for one category to have an increase in valuation, however their rates may decrease compared to the previous year.”

Yarra Ranges Shire has been contacted.