The Prime Minister has clarified that local council fees and charges will not be capped, despite a new rates cap being implemented. Government officials have stated the rates cap is *designed* to encourage councils to reduce services and increase user fees. This explicitly means residents are likely to face higher costs for council services. The intention is to shift the financial burden from ratepayer contributions to direct service charges. Critics argue this will disproportionately impact low-income households and those reliant on council facilities. The government maintains the new model aims for financial sustainability within local councils. This clarification follows concerns that the rates cap would provide comprehensive relief from rising costs.