Politics
Dandenong Caps Property Rates at 2.5 Percent From 2027
The proposed measure would limit annual property rates rises to 2.5 percent for Dandenong ratepayers starting in the 2027 financial year.
How we reported this
Candidates contesting seats in the Dandenong local elections have placed the Household Rates Stabilisation Measure at the centre of their platforms on cost-of-living pressures. The measure would cap yearly increases in council rates at 2.5 percent for residential properties, beginning with the 2027 financial year. It would apply to the roughly 48,000 rateable households across the municipality.
Why the measure has gained attention now
Utility charges and grocery prices have risen steadily in Dandenong over the past two years, according to figures in the council's 2025-26 budget papers. Those papers recorded an average 4.8 percent increase in combined household outlays for rates, water and electricity between 2024 and 2026. Candidates have linked the proposed cap to these recorded rises when speaking at community forums held in Dandenong Plaza and at the Dandenong Market precinct.
Under the measure, a household currently paying $2,150 in annual rates would face a maximum increase of $53.75 rather than the $103.20 that would apply without the cap. Local advocates note that this difference would remain in household accounts available for other recurring costs such as school supplies or vehicle maintenance.
Projected household-level changes
The legislation states that the cap would be reviewed every three years by the council's finance committee using data from the Australian Bureau of Statistics consumer price index for the Melbourne region. Policy analysts say the review clause would allow adjustments if inflation exceeds 3.5 percent for two consecutive quarters. Residents in the suburbs of Noble Park and Keysborough, where median rates stand at $2,340, would see the smallest dollar impact from the cap in the first year.
The government says the policy will be funded by reallocating $4.2 million from the council's capital works reserve over the initial three-year period. The next step is a final vote on the enabling ordinance scheduled for the council meeting on 28 August, after which the measure would appear on ballot papers as a referendum question during the October local elections.