Published on 25 February 2026
To support long-term financial sustainability and continue delivering essential community services, Council is proposing a one‑year 2.25 per cent rate cap variation for 2026–27.
Guided by our Financial Sustainability Strategy, Council has endorsed applying to the Essential Services Commission (ESC) for a one-year increase of rates by 2.25 per cent above the rate cap of 2.75 per cent for the 2026–27 financial year.
We know this is a difficult decision, especially at a time when many households are feeling costofliving pressures. That’s why we want to be clear, transparent and open about what we are proposing and why.
If approved, for the average residential property, this would mean around $37 extra for the year (around $3 per month). The exact amount for each property will vary depending on its individual value.
The proposal is intended to help protect the services, facilities and local places our community relies on every day — such as maintaining parks and community centres, supporting families, investing in safe neighbourhoods, and taking care of roads, paths and local places.
A decision by the ESC is expected in June. We will keep the community informed at every stage.
Each year, the Victorian Government sets a limit on how much councils can increase rates, which is called rate cap.
A rate cap variation is when a council applies to the Essential Services Commission (ESC) for approval to increase rates above that cap for a specific period.
The Essential Services Commission (ESC) is Victoria’s independent economic regulator responsible for overseeing the state's rate-capping framework, which limits the maximum increase in council rates. It advises the government on the annual rate cap based on CPI, assesses applications for higher rate rises, and ensures council compliance. For more information about the ESC, visit www.esc.vic.gov.au
Council is applying to the Essential Services Commission (ESC) for a one-year increase of rates by 2.25 per cent above the rate cap of 2.75 per cent for the 2026–27 financial year.
For many years, we’ve worked hard to keep rates in Glen Eira lower than the metropolitan Melbourne average. This has helped ease cost of living pressures for our community, and we’re proud of that.
However, a decade of rate capping has created a growing gap between what Council can raise and what it costs to deliver services and maintain infrastructure. Construction, maintenance and infrastructure costs have risen by up to 30 per cent, while CPI‑linked rate caps have not kept pace with these real‑world costs.
Council has also absorbed more than $18 million in unfunded responsibilities from other levels of government — including waste services, stormwater management, Victoria Building Authority requirements, urban planning, electrical line clearance, and others.
Council also spent over $55 million supporting the community through COVID‑19 — in lost revenue, added services and increased community need.
Before proposing a rate cap variation, Council has:
Independent reviews confirm Glen Eira is more efficient and affordable than most councils.
Council modelled several options. The evidence showed that an additional 2.25 per cent above the rate cap is the minimum increase that meaningfully stabilises Council’s financial position.
This increase would generate around $3 million in additional revenue per year to support valued services. This uplift comes from applying the higher rate cap across all rateable properties — and is the minimum required to prevent cash reserves falling into unsafe territory.
We know any increase is hard. That’s why we are proposing the lowest possible but meaningful increase that still protects services, instead of larger or multi‑year increases.
The exact amount will vary depending on individual property values.
In 2024–25, the average property rate in Glen Eira is $1,986 — $423 lower than the metropolitan average of $2,409. Even with this increase, Glen Eira would remain one of the lowest‑rating inner‑metropolitan councils.
Without action, Council’s cash reserves — which help us cover day‑to‑day costs and respond to emergencies — are forecast to fall from $67.4 million to $10.9 million by 2034–35. This is an unsustainable position for any council, and it would place pressure on every service we deliver.
Declining reserves would also mean:
Acting now helps avoid more disruptive decisions in the future.
No. Unfortunately, it won’t fix every challenge we face but it will help stabilise our financial position. We will continue looking for savings, efficiencies, external funding and fair user‑pays approaches.
We will keep the community informed at every stage.
We know the rate cap variation may add pressure for some households, especially with the rising cost of living. If you’re struggling to pay your rates, we encourage you to contact Council as early as possible. We can talk through options such as flexible payment arrangements and support available under our Financial Hardship Policy. Our priority is to make sure people feel supported and know they can reach out to us at any time with concerns or questions.
To know more about Council’s rates payment plan, visit: www.gleneira.vic.gov.au/services/rates/rates-financial-hardship
You can also call National Debt Helpline to talk to a financial counsellor for help managing your debt. Services are free and confidential.
National Debt Helpline
Website: https://ndh.org.au/
Phone: 1800 007 007
Small business support: 1800 413 828
Email us at mail@gleneira.vic.gov.au and our Finance team will get back to you.
We are committed to:
We remain committed to protecting the services, places and programs that make Glen Eira a great place to live — now and into the future.
07 July 2019
NAIDOC Week (7 to 14 July) celebrates the history, culture and achievements of Aboriginal and Torres Strait Islander peoples.
08 July 2019
Last week Council approved a shortlist of potential purchasers for its three residential aged care facilities — Spurway, Rosstown and Warrawee.
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