Irate ratepayers slam increase to the rate cap as councils welcome decision

Councils say a new rate cap of 3.5 per cent is “reasonable” after it was introduced under the Fair Go Rates system.

However, the move has been slammed by Ratepayers Victoria, describing councils as an industry “in love with itself”.

The new cap is double the 1.75 per cent rate cap during the 2022-23 financial year.

Municipal Association of Victorian President, David Clark, said while councils were hoping for a 4 per cent cap, they still welcome the decision.

“Four per cent would have helped us out significantly,” he said on 3AW Afternoons.

“And that’s mindful of the fact that last year 1.75 – inflation has been running over seven this year.

“So that’s put us significantly behind.”

Press PLAY below to hear the full interview with David Clarke

Meanwhile Dean Helson, Vice President of Ratepayers Victoria, described the new cap as a “kick in the guts”.

He added that executives and CEOs involved with councils were getting pay rises well above market rates.

“Only a couple of weeks ago I’m aware of an inner city Melbourne concilor that gave a seven per cent increase to their CEO,” he said on 3AW Afternoons.

“That CEO was already on over $400,000 a year.

“Now tell me why a CEO can get that increase, but the staff obviously can’t, and the rest of us are not getting 7 per cent increases in our pay packet to tackle cost-of-living.

“This is an industry that’s in love with itself, that’s obsessed with itself, and has no oversight.”

Press PLAY below to hear the full interview with Dean Helson

Image: iStock by Getty