What is rate capping?

Category: Rates & Budget

Rate capping was introduced in 2016 to limit how much councils can increase their general rates and municipal charges each year. It applies to the total amount of money a council collects from all ratepayers (not to individual bills).

The maximum percentage increase is set each year by the Minister for Local Government. For the 2025-26 financial year, the rate cap is 3%.

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