RATES in the Glenelg Shire will be permitted to increase as much as 3.5 per cent in the next financial year, after the State Government set its highest cap for rate rises since introducing the ‘Fair Go Rates’ system – but certainty is far from guaranteed following this year’s local stoush.

The government announced the rates cap last Thursday and said it would protect Victorians from uncontrolled rate hikes while ensuring local governments remained financially sustainable.

The cap will be double what it was for this financial year’s wave of rates but, according to Local Government Minister, Melissa Horne, remains 0.5 per cent below the recommendation of four per cent by the Essential Services Commission.

However, it comes as no certain comfort for many locals, who have already been on the receiving end of hefty rises in their rates from the Glenelg Shire for this financial year, with some having faced increases of more than 50 per cent.

The aftermath from the budget included several gatherings which helped inform ratepayers how their rates worked and amplified the voices of those opposed to the rises in rates, which were deemed to be legal but not “in the spirit” of a budget.

Local resident Howard Templeton, who has been involved with the Fair Go for Glenelg Shire Ratepayers group, said the doubling of the 2023-24 rate cap was “not unexpected”, against the backdrop of the rising cost of living.

“I would have thought it would be around double (the previous cap),” he said.

The group was at the forefront when many locals took their fight to the council and Mr Templeton said it would continue in the lead-up to the next budget.

While the budgets of 2022 may be in the rear-view mirror, Mr Templeton said answers were still being sought from the Glenelg Shire.

“There’s still a lot to be asked why they set the rates that they did,” he said.

“The last three months have been really difficult to get answers.

“(The council) claimed they were out of pocket because of the rebate but they never were.”

With six months still left until the next financial year, even a draft for the shire’s 2023-24 budget is a long way from materialising – but Mr Templeton said the ‘Fair Go’ group would be ready once it was released.

“The Fair Go for Glenelg Shire Ratepayers group will be quite active in the budget preparation for this year,” Mr Templeton said.

“We just have to wait, bide our time.”

While local anger was directed at the council’s management of the rises in rates for last year’s budget, Mr Templeton said most people were happy with the State Government’s cap.

The rate cap limits the amount a council can increase its total revenue from general rates and municipal charges each year, to fund services and infrastructure such as parks, libraries, roads and waste collection.

Ms Horne said the ongoing rate of inflation in Australia was considered when setting the cap.

“The rate cap for the next financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services,” she said.

“Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”

During the pandemic years, the cap dropped to 1.5 per cent before it was set at 1.75 per cent for the ongoing financial year.

Between 2016 when it was first introduced and 2020, it fluctuated between two and 2.5 per cent.

According to Ms Horne, council rates had increased by an average of six per cent each year in the decade before the cap’s introduction.