Gold Coast City Council budget 2025: Tom Tate’s budget balances 2.7 per cent rate rise with record $1 bbn spent on capital works

City leaders have backed a big spend of millions of dollars on major tourism and economy boosting projects in this year’s council budget. FIND OUT WHAT

The majority of Gold Coast ratepayers will get a 2.7 per cent increase in general rates after Mayor Tom Tate delivered his most difficult budget in more than a decade.

Mr Tate kept his promise of keeping general rate increases close to CPI despite the City facing a $25 million bill for Cyclone Alfred repair works which is expected to increase due to a forecast three-year repair job to restore beaches to their former glory.

Flashback: Gold Coast Mayor Tom Tate delivering the 2024 Budget. The 2025 document has been tougher to prepare. Picture: John Gass.

Other challenges include a wages agreement leading to a 4.5 per cent increase for staffers and general costs going up four to five times plus escalating operating costs.

Neighbouring councils like Logan have warned ratepayers to expect rate hikes if they want services – and Sydney councils have handing down 40 and 87 per cent rate increases.

The budget contains a one-off $10 disaster and management levy.

“It’s one of those things we need to recover,” Mr Tate told councillors.

“It’s one of the most difficult budgets to rein in. After 14 years, this budget is probably the right budget at the right time.”

Budget papers show the general rate rise along with charges – some involving water with State Government utilities – will increase by 6.62 per cent.

The dubbed view tax on “vertical” holdings – high rise buildings across the city – will continue like last year but the larger or newer increases will be in strata or “horizontal” communities where there are large holdings. Developers or owners of those complexes may get higher rates.

The papers say the City will “maintain rate increases at or below CPI for a residential property that is a non-Community Title Property principal place of residence with a median rateable valuation”.

But revenue statements show multi-dwelling residential buildings and properties should “make a greater contribution than single dwellings”.

Total debt is expected to increase by $288 million in 2025-26 from $810 million. It should reach $1.098 billion by mid next year.

Mr Tate has defended the debt as lower than when he began as Mayor, and the City’s annual report says it is “well within industry benchmarks.

The budget gained support from councillors but Councillor Glenn Tozer opposed one key element – the Springbrook cableway which requires major project funding.

“It’s one of our greenest budgets ever. But I have grave concerns about the environmental credentials of the Springbrook cableway,” he said.

Mr Tate at the Evandale Chambers on Friday said the budget delivered three key outcomes:

* It maintains a long-standing commitment to keeping rates low, pegged to CPI;

* It focuses heavily on our commitment to protect the green-behind-the-gold;

* And it provides a record $1 billion-plus investment in capital works projects.

“This is the first time in council history capital works expenditure in a single year has exceeded $1 billion,” Mr Tate said.

Artist impression of Gold Coast Light Rail Stage 4 between Tugun and Coolangatta, including Gold Coast Airport and the NSW border. Picture: Department of Transport and Main Roads.

Keeping any rate increase within the CPI range helps families address cost-of-living pressures and gives certainty to our 80,000 registered businesses, he added.

“The 2025-26 City Budget is $2.7 billion. At the heart of this budget is a commitment to preserve – and build on – the incredible lifestyle qualities of this city, particularly our green and open space,” Mr Tate said.

The Mayor told councillors the City had for 14 consecutive years kept a low-rates mantra.

“There are 168,000 “principal place of residence” properties in our city,” he said.

“Through a super-majority vote, we have retained the 10 per cent pay-on-time discount. Around 85 per cent of ratepayers pay on time and receive the discount.”

Gold Coast City Councillors — Glenn Tozer far left, opposed to rates discount system. Picture: John Gass.

Councillors Brooke Patterson, Glenn Tozer and Peter Young had opposed the discount system during heated debate at earlier budget sessions, concerned that big retail players like Bunnings and Pacific Fair were getting a benefit.

Both Mr Tozer and Mr Young on Friday voted against the budget item on early discounts.

In the 2024 budget, Mr Tate handed down a 4.2 per cent general rate rise, just under the CPI increase, with the $2.5bn budget containing a record capital works spend.

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Originally published as Gold Coast City Council budget 2025: Tom Tate’s budget balances 2.7 per cent rate rise with record $1 bbn spent on capital works