Brisbane raises rates by almost 5 per cent in record $4 billion budget

The average Brisbane rates bill will increase by almost 5 per cent – the biggest rise in 12 years – as the city grapples with the financial hits of flooding, international conflict and the pandemic.

The rate rise was revealed as Australia’s largest council reached a $4 billion annual budget milestone for the first time.

The single biggest line item in the budget is the Brisbane Metro project, with $287.49 million to be spent in the 2022-23 financial year.Credit: Fairfax Media

Lord Mayor Adrian Schrinner handed down his Brisbane City Council 2022-23 budget on Wednesday, defending the 4.93 per cent average residential increase in the process.

Schrinner said it was below the rate of inflation and delivered in the context of cost pressures brought on by the COVID-19 pandemic, February’s devastating floods, and rising costs associated with Russia’s invasion of Ukraine.

The cost of bitumen, for example, had increased by 48.6 per cent.

“Our budget is sensible and affordable,” Schrinner said, pointing out that it was below Brisbane’s inflation rate of 6 per cent.

“Our budget guarantees Brisbane residents will get more and pay less than all the other south-east councils, even before most of them have released their budgets.”

Brisbane’s minimum residential rates bill will be $818.84. However, the average residential owner-occupier will pay about $1800 across the financial year, up from about $1730 in 2021-22.

And while the average residential rate rise would be below inflation, those in 42 suburbs were slated to pay more than 6 per cent – up to 7.3 per cent – more, a breakdown of the data shows.

The local government sector more broadly, and Brisbane particularly, rejects the comparisons between rates and inflation, citing the different costs associated with infrastructure projects.

Brisbane’s 2022-23 budget will feature a $1.35 billion infrastructure bill, 24 per cent of which will be funded through loans, with net per capita debt at $2377 and expected to rise to $2769 within two years.

More than $500 million will be spent over the next three years on flood rebuilding and recovery after more than 23,000 homes across 177 suburbs were affected in February.

That included $166.2 million for community clubs, jointly funded with the state and federal governments, and $59.6 million for bikeways, while Brisbane’s drainage budget would more than double to $131 million.

“Last month I announced we would pause and cancel a number of projects and trim spending in some areas to ensure we can prioritise Brisbane’s biggest-ever rebuild,” Schrinner said.

Lord Mayor Adrian Schrinner speaks to reporters about the 2022-23 Brisbane City Council budget.Credit: Matt Dennien

“This budget delivers on that commitment, ensuring we fast-track this recovery while keeping costs under control.”

The single biggest line item in the budget is the Brisbane Metro project, with $287.49 million to be spent in the 2022-23 financial year, rising to $386.28 million the following year.

There is $174.23 million for the council’s green bridge program, much of which has been delayed due to this year’s floods, $73.29 million for Moggill Road upgrades, and $42.71 million for Beams Road.

A total of $35 million will be spent on new or improved footpaths. The budget will also feature higher rates for residential property owners who list a home or unit with a short-stay accommodation provider such as Airbnb or Stayz for more than 60 days a year.

Schrinner said council’s “suburbs first guarantee” would ensure 80 per cent of spending occurred outside the inner city.

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