Rates and charges underpin the funding of local government and their many important services and infrastructure in Victoria.

Except for the Fair Go Rates system which was introduced in 2015, the structure of the rating system has not changed substantially in decades.

The Victorian Government is both committed to the financial sustainability of councils and ensuring that the burden of rates falls fairly amongst all rate payers.

In response to the Parliament of Victoria’s Inquiry in to the Sustainability and Operational Challenges of Victoria’s Rural and Regional Councils the Government has agreed to undertake an inquiry into the local government rating system to identify changes that will improve its fairness and equity.

The Fair Go Rates system has helped improve the financial accountability of Victoria’s 79 Councils and it has highlighted that the current rating system may be made more equitable, more efficient and more progressive.

The Minister for Local Government has determined to form a Panel for the Victorian Local Government Rating System Review. The Panel will be led by Dr Kathy Alexander, a former South Australian Telstra Businesswoman of the Year, former CEO of the City of Melbourne and experienced board member and Chair in public, not for profit and private for profit organisations.  

The review will conclude in March 2020, when the panel provides their recommendations to the Minister.  

The review was announced as part of a $11.2 million election commitment to undertake an inquiry into the council rating system to identify changes that will improve its fairness and equity – this is to ensure that the burden of rates falls fairly amongst all ratepayers. 

Rating Review Terms of Reference (PDF)
Rating Review Terms of Reference (MS Word)

The consultation for the Local Government Rating System Review will commence later in the year.  Further information on the current rating system is provided here.

For any inquiries to the Review please contact the Review Secretariat at: rating.review@delwp.vic.gov.au

Page last updated: 15/05/19