Queensland Council Approves Record Rate Hike Amid Financial Strain
A 25% increase in general rates has been approved by the North Burnett Regional Council in Queensland, a move officials say is necessary to address spiraling costs and years of stagnant growth. The $69-million budget for the 2025-26 fiscal year, passed on Monday morning, surpasses a recent 20% rate increase implemented by the Townsville City Council for some homeowners.
The North Burnett’s financial woes are indicative of a broader trend impacting local governments across Australia, as councils grapple with increasing service demands and limited revenue streams. All separate charges – including those for sewerage, water, waste management, disaster levies, natural resource management, and landfill – will also rise by 19%.
A Steep Increase for Residents
The rate hike translates to an additional expense of more than $800 annually for residential ratepayers. The council maintains the increase is essential to maintain current service levels without relying on further financial assistance from state and federal governments.
Mayor Les Hotz attributed the substantial increase to “inaction from previous councils,” suggesting long-term financial challenges were not adequately addressed. He stated the additional revenue generated – approximately $2.6 million – will reduce the council’s deficit to around $8 million by the end of the current financial year. “We’re just trying to meet the costs without having to reach out and ask our state and federal government to assist,” Hotz explained.
However, the increase is already drawing criticism from residents. One pensioner, Colin Boot, expressed concern about the impact on household budgets. “I just can’t see where we’re going to get that extra money… the only thing I can see is [cancelling] insurance,” Boot said, adding that a 10% increase would have been more manageable.
Impact on Families and Community Services
The financial burden extends beyond pensioners, with residents anticipating cuts to discretionary spending. Dael Giddens, a former councillor, predicted families would be forced to reduce participation in extracurricular activities. “You might have had the kids playing cricket and soccer and doing swimming,” she said. “They may only get to choose one, so unfortunately that will have an effect on our children.”
The North Burnett region, encompassing nearly 20,000 square kilometers and over 4,800 kilometers of roads, faces unique challenges in maintaining infrastructure and services. According to Chief Executive Craig Matheson, community consultation consistently demonstrated a desire to preserve existing services. However, Matheson acknowledged that costs have risen by 10% in recent years while the ratepayer base – currently 6,323 properties – has grown by only 1%.
A Nationwide Trend and Internal Division
The situation in North Burnett reflects a nationwide problem, with councils reaching a “tipping point” where they can no longer adequately fund essential community services, according to Alison Smith, chief executive of the Local Government Association of Queensland (LGAQ).
The budget’s approval was not unanimous. First-term Councillor Trina Vaughn voted against the measure, citing the hardship it would impose on residents already struggling with the rising cost of living. “I’ve spoken with people who are going without medication because they just can’t make ends meet,” Vaughn stated.
Deputy Mayor Melinda Jones also opposed the budget, but advocated for increased fees and charges as a more sustainable solution. “We’ve weathered fires and floods and now we need to weather something else — the cost of catching up,” Jones said. “Kicking the can down the road will just hand the problem to our children.”
The council’s long-term financial forecast indicates cash reserves could fall to less than one month’s operating expenditure before rebounding to a target of four months by 2032-33. This highlights the precarious financial position and the urgency of addressing the underlying issues driving the rate increase.
