Gold Coast City Council to raise rates more than four per cent – the biggest spike in more than a decade

City leaders have hashed out a significant rates rise during a council session closed to the public – but Mayor Tom Tate says it’s “the best we can do”. Here’s how much more ratepayers will fork out.

Ratepayers are facing a rate rise of more than four per cent – the largest in more than a decade but still under rising benchmarks for cost of living.

City councillors at a special budget meeting on Monday went into closed session to discuss a “finalise rate bill” item for the $2 billion 2022-23 council budget.

They emerged briefly in open to debate “concessions” – showing what foregone revenue would be from the budget – which only highlighted some of the divisions occurring behind the scenes.

The rates rise was discussed in a closed Gold Coast City Council session. Picture: Richard Gosling.

Councillors cannot disclose what occurred in closed sessions but a council insider told the Bulletin about the backdrop to Mayor Tom Tate’s most challenging budget since gaining office ten years ago.

“It (the rate rise) will be four per cent. We are on target,” the council insider said.

“We can’t go any lower. Brisbane (which is the guide) is running at 5.1 per cent CPI. The rate increase for the Coast will be in the low fours.”

Mayor Tate in the lead-up to his 11th budget to be delivered on June 14 cannot provide specifics, but in an exclusive column for the Bulletin gave some big clues.

“In the past 10 years, we have worked tirelessly to ensure any annual rate increases have been capped at, or below, CPI. I’m proud to say that through the hard work of all councillors and the administration, we have achieved that,” he said.

Mayor Tom Tate at his 10th budget. Picture Glenn Hampson.

Budget water and sewerage charges at this stage are unknown, however last year there was no increase from the city’s end.

But ratepayers were hit with increases from the State costs of its bulk water charges.

Ratepayers pay $212 a year for water access charge with the total water usage was at $4.348 a kilolitre, with $3.231 of that from the State’s bulk water charge.

The average general rate bill last year including State charges was $3742 up 3.1 per cent. This included a $561 cost for the bulk water component, up 3.5 per cent.

Other water costs included the service charge ($212) and consumption, about $200.

The Bulletin understands water and sewerage charges in his budget, for the average user of 180 litres a year, will increase by about two per cent.

The total water and sewerage bill was heading for a three per cent increase but a lower than expected State bulk water bill means it could drop down. Details are still being finalised.

Ratepayers last year were handed 2.5 per cent rates rise with council choosing to pass on an increase in line with the consumer price index. The average rates bill was $1652.

Mr Tate estimated at the time the increase amounted to about $1.44 per week, or a litre of fuel. The previous budget was billed the “compassionate Covid costs freeze”. The average bill in 2020 was below $1600. In 2018 the rate increase was 1.68 per cent, about a dollar a week.

Ratepayers face a rise of four per cent. Pictured are properties in Miami.

The biggest challenges this time around for council given its focus on roads, rates and rubbish has been fuel costs which have increased by about 10 per cent.

Mudgeeraba councillor Glenn Tozer sought to remove discounts for early payments to property investors but he failed to get majority support.

Only a handful of councillors backed the move which would have led to up to $20 million being placed in a strategic priority reserve for important community projects.

Councillor Pauline Young said she would be very surprised if an investor would sell a property after losing the discount, which amounted to less than a dollar a day.

“We are talking $250 a year. We are talking 94,000 properties,” Cr Young, who has investment properties, said.

She admitted the money saved could be used for new roads and footpaths.

Councillor Glenn Tozer — seeking money to be reinvested in the community. Picture: Jerad Williams.

Cr Ryan Bayldon-Lumsden supported the aim of Cr Tozer’s motion, saying “as a young person I cannot afford a home”.

But he was cautious about the reforms having not been discussed by the community.

Cr William Owen-Jones was against removing the discounts due to its “targeted nature”.

Mr Tate confirmed on Thursday the average 2022-23 rate increase for a principal-place-of-residence would be “low four per cent”.

The current CPI is around 5.1 per cent meaning the rate increase will be below the Consumer Price Index, the council stated.

“Council costs are rising, just like family budgets but at the same time, we must do everything to ease cost of living pressures,” Mr Tate said.

“Bringing in a rate increase under CPI is the best we can do.

“We’ve achieved that for the past decade and I thank all councillors for their work over recent Special Budget committee meetings.

“Let’s see what the final rate figure is on June 14 (budget delivery day).”

Mr Tate, a strong supporter of the overall discount system, particularly for pensioners, preferred to have the rates debate before next year’s budget talks.

“I think we will be asking the CEO regarding discounts – let’s bring that right to the front of the budget, different modelling and all that sort of stuff and have a position adopted so we don’t have the five minutes to midnight (debate),” he said on Wednesday.

Cr Tozer said the extra funding by removing the discount would see more council investment in critical projects which could lift the quality of life for all residents.

He said property investors had the best capacity to pay because the market was so buoyant.

“I think this is the right time. There has never been a better time for us to review at least one element of our concessions revenue foregone,” he said.

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