Toowoomba council: Analysis shows residents will shoulder 15 per cent increase in rates, fees, charges as mayor defends 2025-26 budget

The Toowoomba Regional Council announced a new budget sporting a 9.5 per cent general rate rise — but new analysis shows the true impact will be much higher.

The Toowoomba region’s ratepayer base will be shouldering a 15 per cent rise in council rates and charges this coming financial year, as the true cost of the organisation’s financial decisions to keep track of debt is laid bare.

Residents will be paying potentially hundreds more in rates in 2025-26 as a result of the latest council budget, which mayor Geoff McDonald framed as a 9.5 per cent general rate rise.

But analysis by News Corp, which has been corroborated by experienced former local government executives, has revealed the council’s net rates and levies will increase from $329m in 2024-25 to $379m next financial year — a 15.17 per cent increase.

While some part of that change is to do with increases to mandatory levies and charges for water, sewerage, waste management and public transport, the major kicker is the TRC’s decision to slash the early payment discount by five per cent.

It means residents who paid early last year will be effectively paying an extra five per cent in rates and charges when their bills come due in August and February.

The 15.17 per cent increase in net rates and charges is higher than any other year for the council since 2013-14, with all other annual increases ranging from 1.18 per cent (2019-20) to 6.83 per cent (2024-25).

It is also higher than any of the Toowoomba Regional Council’s local government neighbours, with the Western Downs ratepayer base only subjected to a 2.8 per cent rise.

The Toowoomba council’s forward estimates suggest future net rate rises of about 4.6 per cent each in 2026-27 and 2027-28, though these will be subject to change.

Toowoomba mayor Geoff McDonald said he acknowledged the “burden” the rate rise would have on residents, but said the council was aiming to avoid having to do it again.

Toowoomba Regional Council mayor Geoff McDonald speaking to media about the 2025-2026 budget, Wednesday, June 18, 2025. Picture: Kevin Farmer

“From the outset, I’d say that councillors don’t want to ever put extra burden on ratepayers,” he said.

“I’ve spoken to a number of our ratepayers, fellow residents right across these 13,000 square kilometres and we know that this decision is something that we didn’t take lightly.

“We know it’s important for us to look forward with great optimism, which we should and can and will, (but) we also know it will be an extra burden on individuals and for that we need to work really hard (as) a council to make sure over the next 12 months we don’t see a similar occurrence to that.

“We’re doing all we can to rein in expenses, but also deliver on essential services and that needs to be our key (as well as) making sure our assets are maintained.”

Interim chief executive Colin Jensen (formerly of Brisbane City Council) will hand over the reins on July 14 to new CEO Sal Petroccitto, who will be tasked with finding nearly $15m in savings to make the council’s projected $1.5m surplus a reality.

The council will pay more than $8.3m in interest on its debt alone, close to the $9m it will have to pay the state government for the waste levy — which was a “pinch point” according to Mr McDonald.

On top of that, the budget documents show the council’s net cash situation after all current liabilities are factored in will barely improve in 2025-26 (up just $284,000 to about $86m) and is in fact expect to drop by $4.1m the following financial year.

This comes despite the council taking on $60m in new debt over those two periods to help pay for the Cressbrook Dam safety upgrades.

Councils are required by the state government to maintain at least four months worth of operating costs to ensure they are financially sustainable.

One former local government stalwart described the council’s financial situation as a “fiasco”.

“Toowoomba has been playing a pea and thimble trick with its financials — it has been consistently unsustainable, hasn’t been maintaining its assets and it’s swimming in debt,” they said.

“It’s going to severely impact the ability of the city to grow economically, because they can’t afford to build the infrastructure that they need to allow that growth.”

Mr McDonald believed the council was meeting all local government financial metrics, bar the asset sustainability ratio (which tracks the percentage of council’s capital spending on renewing ageing infrastructure).

“If you look at all of the measures that we have to report on, we certainly are – the only one that we fall below is the asset sustainability ratio, so that’s the amount of money that’s being spent on assets to maintain them and renew them,” he said.

“Unfortunately in a growing community we’re actually building more new than maintaining old.

“So all the forecasts suggest that we are (financially sustainable) and we’re in a sound position.”

Originally published as Toowoomba council: Analysis shows residents will shoulder 15 per cent increase in rates, fees, charges as mayor defends 2025-26 budget