The Municipal Association of Victoria (MAV) has released its pricing increase forecast for the coming year, predicting inflation will push the costs of current local governance up by 3.6%.


The Local Government Cost Index, released annually, shows that the cost of maintenance and acquisitions is due to grow above the country’s inflation rate. 


“Local government maintains community infrastructure worth $55 billion, and delivers more than 100 services covering everything from babies, aged care and food safety to planning, waste management and public parks." Cr Bill McArthur, MAV President said


Cr McArthur has said that in addition to the index, costs will change dependent on the area of the council and any change in services.

“These could not be delivered without the nurses, carers and kinder teachers who look after children in council buildings, the workers who build and repair our roads and footpaths, and the many other staff and contractors who work at council-run facilities and deliver a vast number of community programs.

“Given such broad responsibilities, council expenses are quite different to household expenses, which mean that council costs are not best reflected in the Consumer Price Index (CPI).”