A rate rise beyond the state cap in the 2026/27 financial year is unlikely for property owners in the Rural City of Wangaratta due to ongoing cost of living pressures.

The state government announced at the end of last year that the Fair Go Rates cap will bring a 2.75 per cent rise on rates in line with the forecast Consumer Price Index [CPI].

Any council that wants to raise the percentage increase must apply to the Essential Services Commission [ESC] for a higher rate cap.

However, they must demonstrate a critical need for spending on services or projects that would require a rate rise above the capped amount.

Rural City of Wangaratta is yet to make an application to increase the rate cap since the Fair Go Rates System was introduced in 2016.

The city's finance team is currently preparing the FY27 budges inputs, including rates and Mayor Irene Grant said "it is likely officers will recommend the 2.75pc rate cap".

She said the 2.75pc cap more closely reflects the ongoing cost increases council has been experiencing.

"We know council is not alone; our community faces these cost pressures too," she said.

"Increasing rates is not something council does lightly, so we will carefully review our 2026/27 budget and consider how we can balance short-term impacts on our community with the longer-term challenges of financial sustainability.”

Minister for Local Government Nick Staikos said councils across Victoria had also received revised guidelines for their use of waste management charges to combat rising levies across the state.

He said the guidelines clarify that waste service rates and charges issued to residents should not be higher than the costs incurred by council for providing the kerbside service – including collection, transport, storage, processing and disposal of waste and recycling.

Minister Staikos said this year’s rate cap aims to ease cost of living pressures for families, while still allowing councils to continue providing services to local communities.

He said in the decade before the introduction council rates were increasing by an average of six per cent each year, whereas in the past decade under the system, the average rate cap has been just 2.3pc.

Councils have until 31 March to apply for a higher cap in 2026-27.

In 2025-26 municipalities which successfully applied for a higher rates cap included Indigo Shire [7.54pc], and Hepburn Shire [10pc].

Alpine Shire and Hindmarsh Shire breached caps without approval, citing administration errors.