Yarrabilba, Flagstone, Bahrs Scrub, to feel burden of Logan rates rise as cost of living surges

Logan City Council has announced rates will rise next month, with the mortgage belt and lower soci-economic suburbs south of Brisbane to feel the pinch after Mayor Darren Power’s last budget before next year’s March election. SUBURB VALUATIONS, MAP

Logan mayor Darren Power handed down his fourth and final budget before next year’s election.

Suburbs in the mortgage belt south of Brisbane will face a rates “bracket creep” and will bear the burden of Logan City Council’s 4.09 per cent July 1 rates rise.

Yarrabilba, Flagstone, Bahrs Scrub, Park Ridge and some of the most impoverished and low socio-economic areas in the state will bear the brunt of mayor Darren Power’s fourth and final budget before next year’s March election, along with commercial and industrial properties and single-title units.

Land valuations soared 18 per cent across the city this financial year.

The council lifted the minimum general rate threshold by 13 per cent, up from $284,507 to $321,517, with the minimum general rate fee of $1010 rising to $1068, as of July 1.

Most of the city’s 88,943 properties will pay the minimum general rate fee.

Those who were paying the minimum general rate this financial year, will experience a 5.79 per cent increase in their general rates.

Those whose properties are valued above $321,517 will experience a 6.39 per cent decrease in their general rate from this current financial year.

Wealthier suburbs of Shailer Park, Cornubia, Carbrook, Springwood and Rochedale South will benefit from the general rates decrease.

More than 2027 properties in Logan added more than $100,000 to their unimproved capital values this financial year, with two adding $346,350.

Demographer Simon Kuestenmacher said the mortgage belt and lower socio-economic suburbs south of Brisbane were already struggling with cost-of-living and inflationary pressures.

Logan City Council handed down its budget and rates charges.

“Logan is in the heart of Queensland’s growing mortgage belt with one of the largest millennial and family populations in the country, so there is no denying that a rates rise in places such as Yarrabilba will hurt,” he said.

“The council is in shock over the population growth and has had no alternative but to increase rates to provide the new services needed in emerging suburbs such as Greenbank and Flagstone.

“Having a minimum general rate is a fair and equitable way of levelling out increases in rates, but maybe councils should be investigating new discounts because there are now more people in these low socio-economic suburbs being affected.

“The state government’s decision to make childcare free for 15 hours a week and the claims that will bring savings of $4600 is a good way to offset these rates rises for many Logan families.”

Demographer Simon Kuestenmacher said Logan council was in shock as the “millennial” population soared in growth suburbs such as Yarrabilba, pictured.

Logan Mayor Darren Power said a typical Logan ratepayer would pay 4.09 per cent more as of July 1, despite a rating restructure to bring about greater equity in rates rises across the city.

He said the “responsible” budget was designed to deliver a $3.89 million surplus by June 30 2024, after pushing up general rates but not touching the water fees for the seventh year in a row.

He said the rates rise was despite soaring construction costs and the above-20 per cent rises in electricity and gas prices.

He said Brisbane’s CPI (inflation) surged 1.9 per cent to hit 7.4 per cent this year.

Logan’s rise in general rates was above Brisbane’s 3.45 per cent increase, which excluded water.

The Gold Coast’s rose 5.5 per cent and Moreton Regional Council’s went up 4.45 per cent. All were announced this month.

Redland ratepayers will find out their fate on June 26 with Ipswich on June 22.

The rates rise will mean a ratepayer on the lowest minimum general rate, will face an extra $2.28 a week or $118.56 a year, up from last year’s $74 increase.

This year’s overall increase will include a $7 rise in the environment levy to $94.40, with increases in the community services charge and garbage fees and a 3 per cent increase in waste water and sewerage connection fees.

Pensioners will continue to receive a discount on the rate charges for owner occupied properties with a $402 a year concession up from $379.20, while those on a part pension will get a $201 discount up from $189.60.

Logan Treasurer Karen Murphy hands down the budget, which increased residential rates by 4.09 per cent. Picture: Judith Kerr

Council governance chair Karen Murphy said the refiguring of the rating structure would see single title block units, some commercial and industrial operations carrying a large burden.

She said money would be well invested in environmental projects including a deep clean of the Albert and Logan rivers after last year’s flood.

Road upgrades and a citywide beautification program, along with funding for sports including basketball, netball, rugby league and the aquatic centre at Beenleigh were also given a ratepayer-funded boost.

Mr Power did not elaborate on the demise of the council’s investment arm investLogan, due to be wound up by next year after posting million-dollar losses.

Money would also be spent attracting new businesses to the area with the council offering incentives for “quality development” including private investment for new hospitals and more housing estates.

Logan Ratepayers’ Association president Rod Shaw said ratepayers would benefit from the axing of investLogan, believed to have debts of more than $9 million.

“With the cost of living soaring, electricity prices increasing 50 per cent and rents going through the roof putting essentials out of reach of many, a rates rise will be the straw that breaks the camel’s back,” Mr Shaw said.

“Council has taken the first tiny step in cost reduction by closing the loss incurring investLogan which has cost ratepayers millions of dollars.

“This must be followed by further cost reductions to provide financial relief for the community.

“It is imperative that council forms a committee to investigate and secure more cost savings that can be passed on to the community.’’

Nearly a third of Council’s revenue over the past five years, including this financial year, was from grant funding.

Despite that, state Auditor-General Brendan Worrall said the council was at a low risk of not being financially sustainable.

■ In the current financial year, the minimum general rate, based on a property’s unimproved value of $284,507 was $1010 a year.

■ Total rates and charges before water usage for the minimum general rate property in this financial year was $2828.36 and in the 2023-24 it will be $2949.80.