Victorian Numbered Acts Victorian Numbered ActsFor Part 8A of the Local Government Act 1989 substitute —
The purposes of this Part are—
(a) to promote the long term interests of ratepayers and the community in relation to sustainable outcomes in the delivery of services and critical infrastructure; and
(b) to ensure that a Council has the financial capacity to perform its duties and functions and exercise its powers.
The "base" average rate , in relation to a Council, means the rate calculated according to the following formula—
where—
BAR is the base average rate; and
Rb is the total annualised revenue leviable from general rates, municipal charges and any other prescribed rates or charges on rateable properties within the Council's municipal district as at 30 June in the base year; and
L is the number of rateable properties within the Council's municipal district as at 30 June in the base year.
Note
The total annualised revenue leviable in the base year includes revenue that is budgeted as at 1 July of the base year and the full year effect of annualised supplementary rates.
The "capped average rate", in relation to a Council, means the rate calculated according to the following formula—
where—
CAR is the capped average rate; and
Rc is the total annualised revenue leviable from general rates, municipal charges and any other prescribed rates or charges on rateable properties within the Council's municipal district as at 1 July in the capped year; and
L is the number of rateable properties within the Council's municipal district as at 1 July in the capped year.
Note
The total annualised revenue leviable in the capped year is the revenue that is budgeted as at 1 July of the capped year.
(1) The Minister may by general Order published in the Government Gazette direct a Council that the capped average rate in respect of a specified financial year must not exceed the base average rate by more than the average rate cap specified in the general Order.
(2) A general Order made under subsection (1) may be directed to—
(a) all Councils; or
(b) a class of Councils; or
(c) a specified Council.
(3) Before making a general Order, the Minister must—
(a) request advice from the Essential Services Commission for the purposes of adjustment in setting the average rate cap; and
(b) have regard to any advice received from the Essential Services Commission as requested under paragraph (a).
(4) The Essential Services Commission must provide advice to the Minister in accordance with a request made under subsection (3)(a).
(5) A general Order does not have effect in respect of a capped year unless it is published in the Government Gazette—
(a) on or before 31 December in the financial year before the capped year; or
(b) on or before such other date fixed by the Minister by notice published in the Government Gazette in the financial year before the capped year.
(1) A Council that is the subject of a general Order may apply to the Essential Services Commission for a special Order specifying a higher cap for one or more specified financial years (up to a maximum of 4 years).
(2) An application under this section must be made—
(a) by 31 March before the first capped year to which the application relates; or
(b) by such other date fixed by the Minister by notice published in the Government Gazette.
(3) An application under this section must be accompanied by the prescribed fee (if any) and must specify—
(a) a proposed higher cap for each specified financial year; and
(b) the reasons for which the Council seeks the higher cap; and
(c) how the views of ratepayers and the community have been taken into account in proposing the higher cap; and
(d) how the higher cap is an efficient use of Council resources and represents value for money; and
(e) whether consideration has been given to reprioritising proposed expenditures and alternative funding options and why those options are not adequate; and
(f) that the assumptions and proposals in the application are consistent with the Council's long term strategy and financial management policies set out in the Council's planning documents and annual budget.
(4) The Essential Services Commission may make guidelines specifying any further matters in respect of applications for a special Order.
(5) The Essential Services Commission may do any or all of the following in relation to a Council making an application under this section—
(a) direct the Council to submit the application in a manner and form determined by the Essential Services Commission;
(b) direct the Council to provide the Essential Services Commission with any information that the Commission considers would be relevant to the application;
(c) provide any further advice or guidance to the Council in relation to the application.
(6) The Essential Services Commission may make a special Order if satisfied that the higher cap proposed by the Council or another higher cap set by the Commission (but not higher than the higher cap proposed by the Council) is appropriate, having regard to—
(a) the matters specified in subsection (3); and
(b) whether the directions given under subsection (5) (if any) have been complied with; and
(c) the Council's record of compliance with any previous general Order and any special Order.
(7) If the Essential Services Commission makes a special Order in respect of a Council, the applicable cap on rates for the year or years specified in the special Order is the higher cap set out in the special Order.
(8) If the Essential Services Commission makes a special Order under this section, the Commission must by notice published in the Government Gazette specify—
(a) that a special Order has been made under this section; and
(b) the Council to which the special Order applies; and
(c) the higher cap; and
(d) each financial year to which the higher cap applies to the Council.
(1) A Council must comply with a general Order and any special Order that applies to it.
(2) If a Council fails to comply with the general Order and any special Order that applies to it, the failure does not affect the validity of any rates or charges levied in respect of the financial year in respect of which the failure occurred.
(3) Despite subsection (2), the Minister may by Order published in the Government Gazette declare that a Council's rates or charges levied in respect of a financial year, or part of the Council's rates or charges levied in respect of that financial year, are invalid for all purposes if the Minister is satisfied that the Council has repeatedly and substantially failed to comply with a general Order and any special Order.
(1) The Minister administering this Act and the Minister administering the Essential Services Commission Act 2001 must ensure that a review of this Part is completed by 31 December 2021.
(2) The purpose of the review is to determine—
(a) whether the mechanism for setting a cap on rates set out in this Part is still appropriate; and
(b) whether this Part is effective or needs to be amended.
(3) The Minister administering this Act and the Minister administering the Essential Services Commission Act 2001 must ensure that further reviews are completed periodically every 4 years after the date on which a review is completed under subsection (1).".