Politics
Dandenong Local Sales Tax Referendum: Projected Changes to Household Costs
Dandenong residents face a November ballot question on a half-percent sales tax increase to fund road repairs and expanded bus routes beginning in 2027.
How we reported this
The Dandenong City Council placed a sales tax measure on the November ballot that would raise the local rate from 8.5 percent to 9 percent if approved by voters. Passage would generate an estimated 2.5 million dollars each year for street resurfacing and additional bus frequency on routes serving the central business district and industrial zones.
Why the measure reaches voters now
Council documents released in May show that 38 percent of local roads received a pavement condition rating of fair or poor last year. The same report projects that without new revenue, deferred maintenance costs will climb to 14 million dollars by 2030. The referendum gives residents the direct choice on whether to cover those costs through the sales tax or leave them to future general fund allocations.
Households that spend 800 dollars monthly on taxable goods would pay an extra 48 dollars per year under the proposal. Commuters who use the Route 12 bus line four days a week would see service increase from every 30 minutes to every 20 minutes during peak hours if the measure passes and funds are allocated as outlined in the council staff report.
Budget figures and expected timeline
The 2026 Dandenong budget paper lists current street maintenance spending at 1.8 million dollars. The additional 2.5 million dollars from the tax would allow crews to resurface 12 kilometres of roadway annually instead of the current six kilometres. If voters approve the measure, the new rate takes effect on 1 January 2027 and collections begin with the first quarter sales reports due in April 2027.
City clerk records indicate that similar local tax measures in the past decade required a simple majority for passage. Early voting sites open on 20 October at the Dandenong Civic Centre and the East Ward library branch. Final results are scheduled for certification by 20 November.