2025/2026 Rate Cap Calculation

Published on 18 September 2025

Hindmarsh Shire Council has reported a minor non-compliance with the 2025/2026 rate cap, with initial calculations suggesting an additional $3,949 will be collected in total across the entire rate base. This means that, on average, the impact will be less than $1 per property over the financial year.

The rate cap limits the maximum amount a council can increase general rates and municipal charges. To apply this increase, Council utilises the valuations provided by the Valuer General. Rates modelling for 2025/2026 was based on an early set of valuations provided by the Valuer General, rather than the final valuations that were provided late in the budget-setting process. Council has levied a total of $8.132million in general rates, so while Council is non-compliant, the overall impact is minimal.

Council acknowledges the challenges faced by the community with the increase in State Government levies and cost-of-living pressures and is proactively recommending a way to correct this error. A report is being presented to Council on 24 September 2025 that is requesting that Council endorses a proportionate decrease in the total rates collected in 2026/2027. This correction will balance out the excess collected in 2025/2026.

Council will continue to work with the Essential Services Commission as part of this reporting process. Council has reviewed its processes around calculating its rate increases and implemented additional safeguards to ensure the error will not be repeated.

Hindmarsh Shire Council Mayor, Cr Ron Ismay said “Council is taking the error in rate cap calculations very seriously and will be prioritising correcting the error in 2026/2027 and putting processes in place to ensure it doesn’t happen again. While these mistakes do happen in the sector, Hindmarsh holds itself to an incredibly high standard of transparency and fairness, and will work with the Essential Services Commission, staff and the community to do better moving forward”.

Rates are used to deliver key Council services like road and public building maintenance, libraries and waste management. For more information on Council rates, visit Rates and Payments Hindmarsh Shire Council. If you are experiencing financial difficulties, please contact our team and we can provide information on support available, payment plans and options that can alleviate financial pressure.

For more information, please contact Hindmarsh Shire Council on 03 5391 4444, or email info@hindmarsh.vic.gov.au.

Monica Revell
Chief Executive Officer