The Andrews Government’s plan to cap council rates has become reality, with legislation passing through State Parliament last week.
The legislation prevents councils from raising rates above a set cap, based on the consumer price index (CPI).
It also gives the Essential Services Commission greater oversight of all council spending, ensuring ongoing compliance and monitoring of outcomes for community benefit.
Local government minister Natalie Hutchins welcomed the passing of the legislation, saying it will improve local government accountability and transparency, while ensuring councils listen to their communities.
But the Opposition’s local government spokesman, David Davis, said it was impossible to base the cap on the CPI, which he described as a measure of price changes that have already occurred.
“What Ms Hutchins intends to do is have bureaucrats with crystal balls guess future movements in prices and then adjust that figure by whatever takes her fancy,” he said.
Wyndham council has consistently opposed rate capping.
Chief executive Kelly Grigsby said it did not account for the continued cost-shifting and erosion of government grants. She also said it did not reflect the impacts of rapid residential growth on regions such as Wyndham. The new system comes in for the 2016-17 financial year.
