Rising property values to push rates above 2.25 per cent cap

NEW property valuations will mean many Victorian households will get bills higher than the 2.25 per cent limit set by the state government.

TENS of thousands of Victorian households will be hit with bigger-than-expected rate rises when notices go out next month.

Despite the state government cap of an average 2.25 per cent, high property revaluations will push up rates for many families above that limit, with estimated annual increases of up to $100 likely.

In the City of Melbourne, 57 per cent of ratepayers will pay more than the cap, with households in East Melbourne and Kensington hit hardest because of rising property values.

But CBD and Docklands residents can expect their bills to be level with the cap or below, Deputy Lord Mayor Arron Wood said.

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Ratepayers Victoria wants independent financial monitors to check on councils’ finances and the rates they charge. Spokesman Frank Sullivan said rate increases should not be automatic and the monitors would see if ratepayers’ money was used wisely.

“You would save millions and you could reduce the rates,’’ he said.

Deputy Lord Mayor Arron Wood said CBD and Docklands residents can expect their bills to be level with the cap or below. Picture: Nicole Cleary

In Stonnington, chief exec­utive Warren Roberts confirmed that almost one in three homes would receive a general rate rise above 2.25 per cent.

“The average residential rate increase is approximately $31 for the year, or 60 cents per week,’’ he said.

In Port Phillip, mayor Bernadene Voss said 28 per cent of ratepayers would receive an above-cap bill.

“Every property has been individually valued and this is reflected in the increase or decrease in their rates,’’ she said.

But in Hume, in Melbourne’s outer north, about two-thirds would pay more. In the outer-eastern Yarra Ranges, 58 per cent will pay above the cap, while in Hobsons Bay the figure is 68 per cent.

All but two of Melbourne’s 31 metropolitan councils are increasing rates next financial year by an average of 2.25 per cent. Monash wants to bust the cap, pushing for a 3.53 per cent rise in rates unless it can introduce a new waste charge to deal with the recycling crisis.

Many Melbourne residents will be hit with higher rates bills than expected.

The Glen Waverley-based council is one of a few that doesn’t have a separate rubbish levy.

Nillumbik will increase rates by an average of only 1.95 per cent. Mayor Peter Clarke, who froze rates last year, has been a long-time critic of council budgeting practices.

“Some of these councils don’t even try to cut costs and just lock in the cap rate of 2.25 per cent. They should look at ways of reducing spending.’’

Several councils are also increasing their waste levies in the wake of the China recycling crisis. Bayside is proposing a 40 per cent, or $92.75 rise, to $324.55.

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@IanRoyall