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Rates & fees

Rates & fees

Rates pay for most council services. In Victoria, the state sets a yearly cap on how much a council can raise its average rates and municipal charge. For 2026–27 the cap is 2.75%, and Colac Otway's budget raises average rates by exactly that much. The cap applies to the average across all properties. Every property is revalued each year, so your own bill can rise or fall by more. The waste charge isn't capped. The council is consulting until 7 October 2026 on changes to how rates are shared from 2027–28.

New to these terms? Read them in plain English
Pensioner rebate
A discount on rates for eligible pensioners.
See the full explainer, with formulas →

Rates at a glance

2026–27 rate rise
Average rates and municipal charge +2.75%The capped average rate per assessment is $2,135, up from a base of $2,078 (budget table 4.1.1(l)). Each rate in the dollar rose 3.9%, while the total value of rateable land fell 0.5% on revaluation. The cap limits the average rate, not the rate in the dollar.
How your rates are calculated
Capital Improved Value × the rate for your property type, plus the $222 municipal charge2026–27 rates per dollar of CIV: residential in Colac, Colac East, Colac West and Elliminyt 0.002935 (the base rate); residential elsewhere in the shire 0.002495 (85%); holiday rental 0.003082 (105%); rural farm 0.001908 (65%); commercial/industrial in Colac/Elliminyt 0.004843 (165%) and elsewhere 0.004109 (140%). The municipal charge rose from $216 to $222. Eligible single farm enterprises pay it on one assessment only.Your rates notice explained →
Waste charge (2026–27)
Weekly service $481 (+$40); fortnightly service $368 (+$31)An average rise of 9.1%. The budget says it reflects rising collection costs, including the state landfill levy and fuel, and the council's policy that kerbside costs are paid by the users of the service rather than from general rates. Waste charges aren't covered by the rate cap.
When it's due
4 instalments: 30 Sep 2026, 30 Nov 2026, 28 Feb 2027, 31 May 2027 — or in full by 15 Feb 2027Notices went out from late August 2026. Paying the first instalment by 30 September activates instalments. If you pay in full, no reminder notice is sent. Payment plans (full payment by 31 May) and direct debit are available.Ways to pay →
Interest on overdue rates
10% a year, charged monthlyAs stated on the council's rates notice guide. This matches the current penalty interest rate (Penalty Interest Rates Act 1983). Under its hardship policy the council may waive or freeze interest.Rates notice guide →
Pensioner rebate
50% of rates and charges, up to $272.70 (2026–27)For holders of a Centrelink Pensioner Concession Card or an eligible DVA Gold Card, on your principal place of residence; not Health Care Card holders. A rebate of up to $50 also applies to the ESVF levy. Apply to the council with a copy of your card.Pensioner rebate →
Financial hardship
Payment plans; interest waivers under the hardship policyApply with the council's rates assistance form. The council's page also lists free financial counselling, including the National Debt Helpline (1800 007 007).Rates assistance →
Proposed changes — have your say by 7 Oct 2026
Draft Revenue and Rating Plan: options include removing the municipal charge and adding a public waste chargeThe council's consultation paper puts forward three options besides the status quo: removing the $222 municipal charge (at once, or over two years) and lowering the farm rate from 65% to 60% of the base rate; one option also sets both commercial/industrial rates at 150%. It also proposes a new public waste charge, indicatively $129 a property based on 2026–27 costs, to recover the cost of transfer stations, street bins, street sweeping and dumped rubbish, now funded from general rates. Nothing has been decided; the council says it may keep the current structure. Changes would apply from the 2027–28 budget.Consultation and paper →
Also on your notice: ESVF
Emergency Services and Volunteers Fund — a state levyThe council collects it for the Victorian Government. It replaced the Fire Services Property Levy in 2025. It isn't council revenue and isn't covered by the rate cap.About the ESVF →

The figures above come from the adopted 2026–27 budget (section 4.1.1 and Appendix C) and the council's rates pages; the commercial/industrial percentage outside Colac/Elliminyt is from the council's consultation paper. Land benefiting from the Tirrengower drainage scheme pays a special charge of $2.50 a hectare, and the council's page lists a Trust for Nature rebate of $10 a hectare, up to $1,000. Check your own notice for your figures.

Sources — check it yourself

Figures are current as at the dates shown and may change — always confirm with the linked source. See the notice at the bottom of the page for full details and how to report a correction.