Hepburn Shire Council has received confirmation from the Essential Services Commission that its application for a 7% rate cap variation has been approved.
In a statement, the Council said the increase reflects an uplift adjustment in rates, resulting in a total rate rise of 10% for the 2025/26 period, which includes the 3% set by the Victorian Government.
The Council intends to increase rates in line with the Governments rate cap in future financial years.
Mayor, Don Henderson, said the decision will enable Council to generate an additional $1.36 million in revenue, which will be invested directly into necessary services and infrastructure.
“Combined with $2.53 million in operational savings identified through Council’s work on the 2025/26 draft Budget, this revenue will support the delivery of core services for our community. Without this approval, additional service cuts would have been required,” said Mayor Henderson.
On average, the one-off 7% rate increase equates to an $2.20 per property per week for ratepayers.
“Maintaining financial sustainability is challenging for most councils, especially rural councils like ours. Our current financial position has been impacted by a range of factors including very limited alternative revenue streams to rates, a relatively small and dispersed population and responding to natural disasters. We are a low rates council compared to Victorian averages and have sustained a rate cap well below cost increases and CPI,” said the Mayor.
“We understand that no one likes paying rates or taxes, however this outcome supports our commitment to maintaining the services and infrastructure our community needs, while ensuring our financial sustainability.”
The Council carried out community consultation on a proposed rate cap variation during the development of the Financial Vision in September 2024 before submitting the variation request.
“The application to the Essential Services Commission was not made lightly, and Council has carefully considered all financial levers available, including operational efficiencies, asset rationalisation, and revenue diversification.”
With the successful application, Council will double the current additional Hepburn Shire rebate on rate charges for pensioners who qualify under the State Government’s Pensioner Rate Remission Scheme. This initiative will increase Council’s rebate from $21 to $42 to assist pensioners in their rate payments.
The draft Budget, Council Plan and other strategic documents will be considered for community consultation at a Special Council Meeting tomorrow (13 May).
The new rates will be reflected in the 2025/26 budget and rates notices issued for the upcoming financial year, due for release in July.
The Essential Services Commission stated in its decision: “Hepburn’s decision to apply for a higher cap of 10 per cent for the 2025–26 financial year is consistent with its long-term planning outlined in its Financial Vision.
“By developing its Financial Vision ahead of the planning cycle currently underway, Hepburn has been transparent with its community about its financial situation and been able to have important conversations to ensure the next tranche of plans is principally concerned with financial sustainability, and focuses on the services that are most important to the community.”
Read the decision: 2025 higher cap applications | Essential Services Commission.
