Victorian households are not made of money, and that's why Premier Daniel Andrews won't give local councils breathing space when it comes to capping their rates.
The days of extravagant rate increases are over, Mr Andrews told reporters on Friday, after claims made by the Municipal Association of Victoria that capping rates would make it tough for already struggling councils - especially those in bushfire affected areas.
"We made a commitment that we would cap rates at the inflation rate unless a local council can demonstrate where the money is going," Mr Andrews said.
"Any council that can't demonstrate why they are charging more than the inflation rate, has no business charging more."
Mr Andrews said the MAV had clearly misunderstood the issue, and those able to demonstrate a need to charge higher rates would be given permission to do so by an independent umpire.
"The days of eight, nine or ten per cent increases are over and I make no apologies for that," he said.
"Households are not made of money and people are not made of money."
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