Last week, Monash Council opted to change its rating system from the present site value system to capital improved value, which calculates rates based on land and building value.

House owners will be the biggest winners with most to pay about 25per cent less on their yearly council rates.

However, unit owners could face increases of more than 500per cent.

Outgoing mayor Paul Klisaris has indicated more rate increases could be on the horizon.

Speaking at the meeting, Cr Micaela Drieberg said she would not support the changes.

"I find it quite amusing, idiotic and ludicrous that the word 'fair' is used on a number of occasions to describe a rating system that will cause increases of 400per cent or more on the back of a global financial crisis, increased food and petrol prices and with another revaluation coming up."

Cr Jieh-Yung Lo also voted against the changes and said moving to straight CIV would be "disastrous" for many ratepayers.

However, Cr Paul Klisaris said the new system would be fairer for most property owners.

"The council held extensive community consultations and is satisfied that the new system is more equitable than either the previously used rating system or the proposed option put to the community during the statutory consultation process, which was the CIV system with a 1.25 differential rate for commercial and industrial properties."

Cr Klisaris said: "We're always talking about being the lowest-rating metropolitan council, which is something we're very proud of, but the time has come for us to review that tag. The demands on our city in the years to come will be such that the onus is on us to deliver and we just don't have the funds."

Monash Ratepayers Association president Jack Davis said there was "no question" that rates would continue to increase.