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Rate Capping Taskforce update

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The MAV’s Rate Capping Taskforce met last week to discuss the draft Rates Capping and Variation Framework from the Essential Services Commission (ESC), and inform the MAV’s submission to the ESC process.

The meeting confirmed that councils continue to have considerable concerns about the proposed framework.

Issues raised by taskforce members included:

  • the appropriateness of timelines proposed by the ESC and their capacity to align with existing statutory budget processes
  • whether rates per assessment is the best base for measuring rates, with population better reflecting service cost demands
  • the index used for the rate cap, which does not reflect significant variations between councils, and includes CPI as an indicator, despite consumer prices not being relevant to councils’ input costs
  • the potential risks the framework will have on councils’ long-term financial position, particularly as it relates to infrastructure renewal and replacement.

The MAV has also commissioned ACIL Allens to undertake an independent assessment of the draft framework, and this work will inform both our final submission to the ESC and any further advocacy efforts the MAV will undertake.

For further information, contact Owen Harvey-Beavis.

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