Launceston council draft budget has big rate increase

The biggest council in northern Tasmania has released their draft budget full of big plans, but it’s set to come at a cost for ratepayers. See how much more you’re paying.

Launceston Mayor Matthew Garwood. The Mercury Bush Summit in Launceston. Picture: Rob Burnett

Launceston residents could soon see a massive jump in their council rates bill.

The council have released their draft budget for the 2025/2026 financial year which includes a rate increase of 6.7 per cent and an increase of 1.5 per cent for the rating base.

This is more than two per cent higher than the previous rate increase, which was 4.5 per cent.

This is also much higher than the Hobart consumer price index which was 1.5 per cent for 2024, according to the Australian Bureau of Statistics.

City of Launceston mayor Matthew Garwood said the increase is mostly driven by inflationary pressures and increased labour and material costs but the major projects planned mean it will benefit Launceston.

“We’ve worked hard to keep rate increases modest in recent years, but the economic landscape has shifted,” Mr Garwood said.

“Our long term financial planning couldn’t fully predict today’s economic challenges.

“Labour costs have risen with a 5 per cent staff pay increase from July 2026, tied to a new Enterprise Agreement, and new roles have been added to enhance services.”

Mr Garwood said inflation was also a factor.

“Savings in electricity and water usage have offset some pressures, but the proposed 6.7 per cent rate increase is aimed at ensuring we can deliver this ambitious agenda without compromising essential services,” he said.

It’s estimated by the council the rate increase works out to be $2.30 per week for the median residential property, an increase of $119 for the year.

WHAT’S IN IT FOR YOU?

The budget draft includes an increase for a number of projects which will benefit living quality in Launceston.

These include $500,000 for new events and activations, $400,000 for resident growth area planning and $100,000 for housing diversity and car park utilisation.

There is also $32 million for capital works like the $6.5 million for the Princess Theatre and Earl Arts Centre upgrade, $2.5 million for Town Hall refurbishment and $4.3 million for road resealing and resheeting.

The budget has an estimated revenue of $147,448,000 for 2026, a $5.5 million increase from the previous year.

The rates and charges revenue will increase from $78.9 million to $85.2 million.

The council plans to get out of the deficit, $3 million in 2025, to a surplus of $800,000 in 2026 but will have an increased underlying deficit of $649,000.

The council has no plans for further borrowing and intends to remain debt free.

The draft budget is open for community feedback and submissions until April 30.

Originally published as Launceston council draft budget has big rate increase