Councillor Simon Illingworth said while it was important to put credit card use under the fraud microscope, it was "incredibly important that councils realise that the ratepayers use a much broader lens called ethics."

"Councils will not evolve if the only question they ask themselves is what I'm doing lawful," he said.

Cr Illingworth moved the adoption of the council's Corporate Purchase Card Policy on Tuesday night.

The former policeman said prior to the COVID-19 pandemic the average wage of Corangamite ratepayers was under $40,000.

"I don't know what it is now but I doubt it's going to be more and that should give us a sobering realisation as to the use and what we should and shouldn't use credit cards," he said. "Councils ideally must set their sails to the prevailing wind and stay in touch with the people they serve. Some councils still allow their cards to be used first and the validity of the purchase debated later, that's not a particularly clever way to do it.

"The suck it and see method puts unwarranted pressure on managers and government officers and auditors who are consistently then put in awkward situations and conversations about the integrity of the employees purchases and worse still often have to claw back funds from a now disgruntled employee.

"Credit card use shouldn't be ambiguous, it's high risk and we can improve."

Councillor Helen Durant said being given a corporate credit card was a privilege and also a necessary means of doing business. "There has been numerous instances across Victoria where misuse of these cards has put individuals and organisations in the spotlight," she said.

"The Victorian Auditor General takes no prisoners when it comes to identifying and reporting on fraudulent behaviour.

"A strong policy is a starting point and this needs to be underpinned by processes that have ongoing and rigorous oversight."

The council officer's recommendation was supported unanimously by the council.