Hepburn Shire Council Faces Public Outcry Over One-Year 10% Rates Hike
Residents of Hepburn Shire in central Victoria — home to the popular tourist town of Daylesford — have reacted angrily to a planned 10 per cent rates increase, which the financially struggling council says is a one-off measure to address a significant budget shortfall.
The Essential Services Commission recently approved a 7 per cent hike above the state’s 3 per cent rate cap, bringing the total increase to 10 per cent for the 2025–26 financial year.
“We’ve had to find some more money and that’s what we’re attempting — to do it as a once-off,” said Mayor Don Henderson.
The council is facing a $4 million annual deficit and claims the increase will raise around $1.36 million, which will go towards maintaining essential services and infrastructure. However, residents say they are bearing the brunt of years of mismanagement.
Legacy of Financial Struggles
The council has a troubled financial history, including a $5.65 million loss from the failed Rex project, an initiative launched in 2016 to convert a Daylesford art deco building into a community hub — a project that was never completed.
Mayor Henderson said the Rex loss was only part of the issue. He pointed to the cost of storm clean-ups in Trentham and Creswick in 2021 and 2022 — which totalled $3.5 million — and the cost of maintaining the shire’s numerous heritage buildings.
Community Backlash
The draft budget, including the 10% rate increase, is open for public feedback until June 5, but many residents are already expressing their anger.
Blampied resident Cameron McPherson said the increase, combined with a new fire services levy, would cost him and his wife an extra $2,000 to $3,000 annually.
“The shire has wasted an immense amount of money and now the ratepayers are basically having to cope with their incompetence,” he said.
“If you’re going to put up rates by 10 per cent in this cost-of-living crisis, then you need to justify it — and they aren’t justifying it.”
Deborah Clarke and her wife Louise McLachlan, who live and run a business in the area, expect their costs to rise by $300–$400 a year. They criticised the lack of meaningful community consultation.
“I don’t think people would mind a rate rise if we were getting things we actually wanted,” Ms Clarke said.
“We’ve been screaming for an indoor pool for 25 years.”
Council Response
Cr Henderson said the council had to demonstrate to the Essential Services Commission that it had considered other revenue options, including asset sales, borrowing, and cost-cutting.
“It’s regrettable but necessary. We’re trying to cause as little impact as we can, but we still do have to find the money,” he said.
He also defended the decision by noting that Hepburn Shire currently ranks 60th out of 79 Victorian councils in terms of rates, suggesting it remains among the lower-charging councils despite the increase.
The Municipal Association of Victoria declined to comment, stating that rate-setting is the responsibility of individual councils.
