Herald Sun Article – Victorian Government Considering Changes to the Rate Cap

24 July 2026

For the last decade local government workers’ wages have gone backwards whilst CEOs and politicians’ wages have gone up.

To achieve fair wages, ASU members have been engaged in an historic campaign for the state government to fix the funding problems that have been holding local government wages back, and to win fair and decent pay rises that keep up with the cost of living.

Today, the Herald Sun has reported that the Victorian Government is likely to make changes to the rate cap, with a policy proposal expected to be considered by the Cabinet on Monday.

This is a direct result of ASU members uniting as an industry and fighting for fair pay. The action that you have taken to put pressure on the government and on councils is working.

The rate cap has starved councils of funding and has resulted in services being cut or outsourced, job losses, and wage increases as low as 1.5% in some councils. This hurts both workers and the community.

Local government workers cannot continue to lose money whilst working every day for your communities. Fixing the rate cap to enable decent wages for the people delivering vital community services is an essential cost of living measure that will help thousands of workers across Victoria.

The proposed change means the rate cap would remain in place, but that wage increases are adequately accounted for. This means minimal increases for rate payers and life-changing improvements to the wages of local government workers.

The ASU expects all members of parliament to support this modest and responsible cost of living measure to improve the wages of local government workers.

The Herald Sun article today describes how services have been cut under rate capping. It also shows the significant progress ASU members have made, but we’re not there yet!

ASU delegates from the 8 metropolitan MEB councils will be meeting on Wednesday to discuss our campaign, including the potential for further escalation of industrial action.

In the meantime, we need local MPs to commit to standing up for local government workers. All ASU members are encouraged to call your local MP to explain how fixing the rate cap is an essential cost of living measure for local government workers and their families.