Council & Politics
21 February, 2026
New rules aim to ease rate pressure
VICTORIANS doing it tough financially are set to receive clearer and more compassionate support from local councils under updated statewide guidelines on rates and charges.
The Allan Government has introduced revised Ministerial Guidelines on the Payment of Rates and Charges to help councils provide meaningful hardship assistance to ratepayers facing financial stress, family violence, economic abuse or unforeseen life events.
The changes are designed to give councils a framework for offering flexible payment options — such as staged payments, deferrals and waivers — and to encourage earlier, easier access to support before debts grow.
Under the new approach, councils are expected to make hardship policies easier to find and understand both online and in person, and to simplify application processes so people are not deterred from asking for help.
The guidelines also support councils to refer residents to independent financial counsellors, giving people extra help to navigate options and broader financial support services.
In a statement last week, Minister Nick Staikos said the changes were intended to ensure respect and understanding for people experiencing hardship.
“These hardship guidelines will ensure councils treat ratepayers who are dealing with difficult financial or personal circumstances with compassion, fairness and understanding,” Mr Staikos said.
“By providing clear guidance, we’re giving councils the tools they need to support vulnerable Victorians facing prolonged hardship or unforeseen hurdles such as job loss, illness, or other changes to family circumstances.”
The revisions come as the government confirms a 2.75 per cent cap on general rate increases for the 2026–27 financial year, offering some predictability for households and small businesses.
Council rates remain a crucial source of revenue for local infrastructure and services — from roads and footpaths to libraries, parks and community centres — but the new guidelines aim to balance councils’ funding needs with an increased focus on human impact and early support.
The updated hardship guidance was developed in consultation with councils, peak bodies and advocacy groups, and is now in effect across Victoria.
For residents facing difficulty meeting their rates, the government says councils should be listening first, not penalising, and offering tailored options where possible.
More information on hardship policies and how to seek assistance is available on the Victorian Government’s website.