Budget 2025–26
Council adopted the Budget 2025–26 on 30 June 2025.
Melbourne is poised for a period of rapid transformation and our $732.4 million Budget 2025–26 delivers the essential services our community needs today, along with a bold vision for our city in the future.
This year’s Budget sets out the priorities and investments we will deliver for Melburnians in 2025–26.
It strikes a balance by focusing on what matters most – delivering core services, easing the pressure on household budgets, spending responsibly and achieving sustainable surpluses. It also delivers what Melburnians want and need – a clean and safe city, with open and green spaces and a great place to do business.
In 2025–26, we’re on track to deliver back-to-back surpluses by making prudent financial decisions, without compromising on services our community needs every day.
This budget sets the direction for serving our growing community, by investing in essential services and ensuring Melbourne remains an admired global capital city.
Key Budget 2025–26 facts
Our $732.4 million Budget includes:
- $154 million in community facilities and infrastructure
- $70.6 million in safety and cleaning
- $44.3 million open space, streetscape and greening
- a surplus of $150,000.
Thank you to everyone who contributed their feedback. We received more than 1500 submissions. For the consultation summary including a list of commonly asked questions, please visit Participate Melbourne External link.
Read the adopted Budget 2025–26:
Along with Budget, we also developed our new Revenue and Rating Plan 2025-29.
The Budget 2025–26 is a statutory requirement and was adopted on the 30 June 2025.
The Budget 2025-26 shows how we will finance the first year of the four-year Council Plan 2025-29.
In accordance with Section 94(1) of the Local Government Act 2020, a Council must prepare and adopt a Budget for each financial year.
The Council must ensure the Budget contains financial statements and other information including capital works, human resources and grants. The Budget must contain the amount the Council intends to raise by general rates, municipal charges, service rates and service charges and whether general rates will be raised by the application of a uniform rate, differential rate or limited differential rate.
The Budget must include a description of services, major initiatives and initiatives to be funded for the financial year and how they will contribute to achieving the strategic objectives as specified in the Council Plan.
From 13 May to 2 June 2025, we consulted with the community of the draft Budget 2025–26. During the consultation process, we heard from more than 1550 people sharing their views on a range of issues.
The 2025–2029 Council Plan, prepared in accordance with section 90 of the Local Government Act 2020, is the Council’s key strategic document.
It describes:
- the strategic objectives of the Council
- the outcomes the Council intends to achieve
- how the Council will achieve these outcomes during its four-year term
- the resources required
- how it will measure success.
Rates change every year as property values change. Property valuations are market-driven and determined by the Victorian Government.
The City of Melbourne is legally required to issue rates and collect rates revenue.
Each year our rates are determined by property valuations conducted by the Victorian Government. This means that rates do change depending on the annual evaluation.
For 2025-26, the Victorian Government has set the rate cap increase for all councils at 3 per cent.
To ease cost-of-living pressures, we are proposing to rebate all ratepayers this 3 per cent increase in 2025-26.
Council has a strong commitment to supporting all members of our community. Ratepayers experiencing financial hardship can apply for assistance via our website.
City of Melbourne owner-occupied residential property owners can apply for assistance via our website or call the Customer Contact Centre 03 9658 9658.
The purpose of an Annual Plan is to implement the four-year Council Plan.
We are currently developing the Council Plan 2025–29 alongside the Melbourne 2050 Community Vision for adoption by 31 October 2025.
The key activities and services reflecting our commitment to deliver for the community have been included in the draft Budget 2025–26.
