There is a misguided campaign to cap council rates to the rate of inflation.
This would be a disaster for our communities, especially when state and federal governments are cutting social services because they’re too gutless to increase taxes.
Councils need to set their rates based on community needs.
We can’t, on one hand, demand rate rises be limited to CPI while expecting councils to continue to maintain infrastructure and provide social services.
So-called “greedy” councils have had to take over community services from Spring Street, while accounting for the state government’s hefty landfill tax, and ensuring they can cover entitlements of all council employees.
Setting rates needs a horses-for-courses approach, particularly for those councils with few alternative revenue streams. Restricting council budgets and rates will increase Melbourne’s social divide.
