Alderman Louise Elliot says Hobart rates are too high but Lord Mayor trying to keep rise down

As Tasmanian councils set their rates for the coming financial year, one Hobart alderman says the capital’s rates are too high. Read the differing views.

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Despite a proposal for a 3.5 per cent increase in rates for Hobart households next financial year — believed to be one of smallest rate rises in the state — at least two aldermen believe rates are too high.

The Hobart City Council will consider a recommendation for a 3.5 per cent rise at its meeting this month.

Kingborough Council recently approved a 6.5 per cent rate hike for the coming financial year despite council officers recommending an 8 per cent rise.

Lord Mayor Anna Reynolds stressed that the council was trying to keep the cost of rates down.

“We’re working to keep any rate rise as low as possible while still delivering the services and infrastructure our community relies on,” she said.

“A 3.5 per cent rate rise is proposed in our draft budget, which aims to balance financial sustainability with community expectations.

“This recommendation has not yet been endorsed and will be considered by council at its next meeting on 30 June.”

Anna Reynolds Lord Mayor of Hobart. Picture: Nikki Davis-Jones

Councillor Ryan Posselt, who chaired a recent meeting of the council’s Hobart Workshop Committee, said a 3.5 per cent rise in rates would be one of the lowest in the state.

“It’s pleasing to see that the long-term fiscal management plan, which has a planned rates rise over the four-year projections of 4 per cent, that because of our fiscal management, we’ve managed to come beneath our own expectations,” he said.

“That’s really pleasing and it’s a good sign of strong financial management within the council at present.”

Mr Posselt said any suggestion that there be a zero rate rise was “completely irresponsible”.

But Alderman Louise Elliot believes Hobart ratepayers “pay too much and don’t get the value they deserve”.

“A simple comparison of Hobart and Launceston shows that Hobart is not efficient enough or going too far beyond core council services. I think Hobart falls into both of these traps,” she said.

“Launceston covers over 4000 square kilometres, has double the amount of roads to maintain, and has more people, yet it charges its ratepayers around $20m less a year than Hobart.

“I don’t buy the excuse that the reason for Hobart’s high rates is because it’s a capital city.

“There’s been progress over the past two years around Hobart’s finances but it’s not happening fast enough.

“The council must be far more prudent and efficient, especially in a cost of living crisis.”

City of Hobart councillor Louise Elliot. Picture: Nikki Davis-Jones

Businessman and Alderman John Kelly, agrees that rates are too high, especially he says for businesses.

He said commercial property owners were likely facing a rate increase of 5 per cent.

“That is more realistic than the 10 per cent that was being considered,” Mr Kelly said.

“It is going to be tough for many businesses but it’s better than the 10 per cent which would have been bloody outrageous.

“We’ve got a long way to go to get rates down consistent with other cities of the same size.”

At the council’s Workshop Committee Meeting on June 16, a draft budget estimates paper showed an operating budget of $183.9m for services in 2025-26.

Revenue from rates and charges was estimated to be $120m, an increase of $4.4m on 2024-25.

The council has a capital works program of $36.7m and debt levels were forecast to reduce by $3.3m in 2025-26 to $32.5m by June 30, 2026.

Originally published as Alderman Louise Elliot says Hobart rates are too high but Lord Mayor trying to keep rise down