Noosa Council releases draft 2022-23 budget with proposed rates rises

Properties at Noosa reached an all time high value of $13bn and now residents are learning the impact that could have on their hip pocket with a looming rates rise.

Families and homeowners already feeling the pinch could cop rates rises of between five and 40 per cent after land values soared across the Noosa shire.

An average rate rise of five per cent has been proposed but some residents would see increases of more than 20 per cent, the Noosa Shire Council’s draft budget revealed.

Cost of living was a key factor in the proposed 2022-23 budget as Mayor Clare Stewart revealed the struggles of balancing rate rises amid soaring land values.

Councillors last week voted in favour to release the draft budget for public feedback over a two-week consultation period.

In March, 2022, the state government valuer-general valued Noosa’s 22,183 properties at $13bn, representing an average increase of 36.5 per cent since 2019.

Noosa business owner and resident Moe Rickard said everyone was suffering due to the rising cost of living.

The part-owner of Asian fusion restaurant Sum Yung Guys said with fuel, groceries and electricity rising, the looming rates rise was concerning.

Noosaville residents Michael 'Moe' and Lily Rickard are concerned for the looming rates rise amid growing cost of living pressures.

Asked of the timing of the looming rates hike, Mr Rickard said “it’s savage”.

“Everything is going up and up and it’s going to end up impacting small businesses as well as residents,” he said.

“Power is going up, everything is rising apart from wages and you try to do your best as a business owner but there’s a point where you just think ‘wow’.”

Mr Rickard, 38, and wife Lily, 30, purchased a property in Noosaville three years ago which they received their first land valuation for in 2022.

“Looking at it I thought this sounds like a lot for a 640sq m block,” he said.

“Knowing that’s what council bases your rates on is concerning.

“It’s struggle street for the average Joe and business owners.”

Ms Stewart said the land valuations provided by the valuer-general in early-2022 resulted in “unprecedented” increases across the region.

The general rate for a property is calculated by multiplying the unimproved land valuation by a rate in the dollar for each category of land.

The council proposed to increase the threshold for the minimum general rate from $325,000 to $500,000, to ensure the majority received the minimum increase.

Noosa Mayor Clare Stewart said the council worked to keep rates rises to a minimum amid rising cost of living pressures. Picture: Mark Cranitch

A breakdown of rates distribution revealed about 16,700 residents would have a five per cent increase, 1550 a 5-10 per cent increase and 5858 a 10-15 per cent increase.

Meanwhile rates for 2392 residents would rise 15-20 per cent and 1621 would increase by 20-30 per cent.

A 30-40 per cent increase loomed for 178 homeowners and one resident would have an increase of more than 40 per cent.

“The challenge for us is to set the general rate which relies upon those values … every effort has been made from council staff to try to moderate the impact of these increased land valuations on our community, yet we cannot mitigate the full impact,” Ms Stewart said.

“We know there has to be a rate rise, we cannot provide necessary services without it.”

She said the council proposed the 5 per cent rate rise which would equate to about $80 a year.

It would be the third budget for the 2019 elected council and possibly the most challenging yet, according to deputy mayor Frank Wilkie.

“We did think the first two Covid budgets we had were difficult but this year has taken it to another level,” he said.

Meanwhile Sunshine Coast Council was expected to release its 2022-23 budget on June 23, 2022.

Finance portfolio councillor Ted Hungerford said managing rates rises with land valuation increases was a “balancing act”.

Across the Sunshine Coast there was a 28.4 per cent land valuation increase but some suburbs jumped more than 80 per cent.

Mr Hungerford said the council always aimed to keep rates rises below CPI.

Residents have until June 5 to have their say on the Noosa Council’s draft budget.

Information sessions will be held at Cooroy Library from 11am-1pm on June 1 and 10am-2pm at Noosaville Library on June 2.

For more information click here.

Originally published as Noosa Council releases draft 2022-23 budget with proposed rates rises