HERVEY Bay residents will see higher rates in the 2025–26 financial year as the Fraser Coast Regional Council adopts a $527 million budget to meet growing service demands and economic pressures.
Homeowners can expect to pay an additional $6 to $9 per week—or $312 to $468 annually—on total bills, which include general rates, levies, and water and waste charges.
While around a third of ratepayers on the minimum general rate will see an increase of approximately 3.5%, overall general rates revenue is forecast to rise 12.49%, reflecting regional growth rather than individual household increases.
Council expects to collect $4.5 million in rates from new properties, but says it will cost over $7.2 million to provide infrastructure and services to these areas.
“The cost of growth is real,” one councillor said, “and we are doing what’s needed to ensure our communities remain liveable and well-serviced into the future.”
This marks the second consecutive year of stronger rate increases, following a previously conservative approach.
Over the past five financial years, rate revenue increases were mostly 5% or less, with some years as low as 3.5% or no increase at all, as Council worked to shield residents from pandemic-related financial hardship.
However, rising infrastructure costs, population growth, and higher demands for services have prompted a shift in strategy.
“Escalating costs for materials, labour, and construction have created financial challenges for councils across Queensland and the country,” councillors noted during budget deliberations.
Council is also forecasting a $4.4 million deficit in 2025–26 to help manage costs while easing the immediate burden on ratepayers.
To help close the infrastructure funding gap, Council is increasing developer infrastructure charges to the maximum allowed under Queensland law, $34,500 per lot, up from $32,000 in Hervey Bay and $19,000 in Maryborough.
“These contributions help fund essential infrastructure like roads, sewerage systems, and stormwater drainage,” Mayor Seymour said.
“But even at the maximum rate, developer charges alone cover only about 39% of the cost of delivering trunk infrastructure.”
“We are not just calling out the problem, we are calling for a solution.”
“Our message is clear. We are not against growth, but it must be well managed and must be fair. Ratepayers cannot be expected to bear the full cost of new developments.”
He also challenged the State Government’s capped charging framework, which hasn’t been properly indexed since 2011, contributing to a $2.2 billion infrastructure shortfall across Queensland over the next four years.
Cr Sara Faraj echoed these sentiments.
“Over 60% of local councils across Australia are now in financial distress. Local government is increasingly being asked to do more with less, while absorbing the impacts of reduced funding from both state and federal governments.”
Cr Denis Chapman was pragmatic with his assessment, stating that “It has not been an easy task for any of us. But it is necessary to continue the vital services, for this growing region. While I support the direction of this council, I feel I need to point out that higher levels of government also need to recognise the growing strains, being placed on us.”
Last year’s 38% average uplift in land valuations across the Fraser Coast also influenced the budget.
To ease impacts, Council lowered the residential rate cap from 20% to 10.5% in 2024 and that cap remains in place for the coming year.
Key budget allocations for 2025–26 include:
- $180 million for water, waste, and sewerage
- $128 million for roads and bridges
- $89 million for economic development and tourism
- $40 million for parks and public spaces
- $15 million for arts and cultural projects
While the budget passed unanimously, several councillors voiced concern over limited support from state and federal governments, warning that local governments are being left to shoulder the financial burden of regional growth.