Rate Cap Calculation Outcome

Published on 29 September 2025

Hindmarsh Shire Council has committed to addressing the 2025/2026 rate cap non-compliance by decreasing the total rates revenue in 2026/2027 by a proportionate amount.

On Thursday 18 September 2025, Hindmarsh Shire Council announced a minor non-compliance with the 2025/2026 rate cap. This non-compliance was tabled at the Council meeting held on 24 September 2025, where Council resolved to “[acknowledge] the non-compliance with the 2025/2026 Rate Cap and [endorse] the proposed corrective action to proportionately decrease the total rates levied in 2026/2027 by the excess amount ($3,949 approximately) that is to be confirmed by the Essential Services Commission.”

The Rate Cap for 2025/2026 was set at 3% - this is the maximum amount a council can increase general rates and municipal charges without applying for a variation. Due to an error in property valuation inputs, Hindmarsh is slightly above the limit at 3.05%. Initial calculations suggest this amounts to around $3,949 in excess across the entire rate base. The impact, averaged across all rateable properties, is less than $1 per assessment.

Hindmarsh Shire Council Mayor, Cr Ron Ismay said “As soon as we became aware of this error, Councillors and Council officers were committed to identifying a fair resolution for the community. While we continue to work through reviewing Council processes, we’re pleased to offer some assurance around how Council will resolve this in the next financial year”.

Council will continue to work with the Essential Services Commission as they consider the non-compliance, ensure that the Council decision is reflected in 2026/2027 budget development and that a thorough review is undertaken to ensure that this error is prevented in the future.

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