Overview
- Yarra Mayor Stephen Jolly floated merging Melbourne, Yarra and Port Phillip as a last‑resort response to mounting budget pressure after a decade of rate capping.
- Premier Jacinta Allan said the government is not considering amalgamations and noted most councils are operating with budgeted surpluses.
- The Victorian Local Government Grants Commission told a federal inquiry the average gap between councils’ expenditure needs and revenue capacity has widened by about 20%.
- Unions, led by the Australian Services Union, condemned merger talk as a threat to jobs and services and urged stronger funding instead.
- Glen Eira Council applied to lift its rate rise to 5% from the 2.75% cap to stabilise finances, a move that requires approval from the Essential Services Commission.