An inner-city council's plan to hit its residents with a new "bin tax" has prompted Local Government Minister Natalie Hutchins to call in Victoria's essential services watchdog.

Yarra Council wants to introduce a $247 waste charge. The rates increase would hit all property owners with a rubbish bin.

Yarra Council wants to charge property owners $247 to pick up their bins, on top of their existing rates. Credit:Simon Schluter

Many Victorian councils already have a similar charge.

But Yarra is the first to try introducing such a measure since the Andrews government brought in a cap on councils raising rates above inflation.