FinPro Submission To The ESC – Local Government – Rates Capping And Variation Framework Consultation Paper

April 29, 2015

FinPro will be lodging a submission on behalf of members to the Essential Services Commission on the ‘Local Government – Rates Capping & Variation Framework Consultation Paper’. We are asking members to help contribute by providing us with their views on the proposed rate capping mechanism and highlight the issues that will affect their council and the sector in general. Please send your feedback and comments to Gabrielle Gordon [email protected] or post your comments on the FinPro Yammer site by Friday 8 May 2015.


In January 2015 the Minister for Local Government advised a rate cap would be introduced before the start of the 2016-17 financial year. Councils will be required to send their budgets to the ESC to gain approval for any rate rises above inflation (or some other indexation factor) advised by the Minister.

The ESC received a Terms of Reference from the Minister for Finance (in consultation with the Minister for Local Government) to conduct a review and report on a local government rates capping framework. The ESC has been directed to inquire into and advise the Ministers on options and a recommended approach for a rates capping framework for implementation from the 2016-17 financial year, including advice on the processes and guidance to best give effect to the framework.

The ESC is required to complete its final report by 31 October 2015. The consultation paper can be accessed on the ESC website. It requests that submissions be focused on 22 key questions. Attached is a template that includes the 22 questions that you can use to respond. We are also interested in any real examples (data, graphs, tables) on how this will impact your Council.

Submissions on the Consultation Paper close on 15 May 2015.

Local Government Rate Capping submission – Response template