Budget

Councils charge rates to raise revenue so they can provide services and infrastructure to their communities. Each year, as part of the budget process, Councils decide the rates and charges for the financial year.

General rates are levied on all properties which are not exempt under legislation and contribute towards all Council services other than waste, water and wastewater. A rate is levied based on the unimproved value of the land.

The unimproved value of the land is determined by the State Government and valuations are typically updated every two years.

Particular land uses can contribute to an increased cost of providing services and facilities. Accordingly, Council may determine different categories of rateable land based on land use, access or consumption of Council services.

Council may levy a different rate in the dollar for each category in calculating the rate amount.

Council’s budget determines how much money it needs to deliver its services to the community. Council then calculates how much each category of ratepayers should contribute to these services.

The unimproved land values of properties in these categories are then assessed against the total to determine the rate-in-the dollar that will apply to that category.

The minimum amount of general rates payable, irrespective of valuation, which reflects the principle that all ratepayers make a meaningful contribution.

A charge for the provision of water, wastewater or waste collection services for properties that are within declared service areas. Council water charges have a two-part charge for infrastructure and consumption.

There is no consumption included with the infrastructure charge - that is you pay for all the water you use.

A debt is borrowed money that must be repaid.

A deficit is the amount by which expenditure exceeds income.

For example, if Council has an operational deficit, this is not a debt. It is the amount by which the cost to deliver services exceeds the revenue it will receive in that financial year.

A surplus is the amount by which income exceeds expenditure. It is Council’s objective to have a surplus each financial year.

Council’s care for a wide range of community assets from water treatment plants to bridges. Just like your car, the value of those assets declines over time as the asset experiences wear and tear.

Depreciation expense is the cost of this wear and tear. This cost is quarantined in the financial accounts and used to fund replacement and repair of these assets at some point in the future.

Councils should ensure these funds are available for future investment and not use them to fund new assets as the funds may not be available if and when existing assets fail.

Given the significant asset base that Bundaberg Regional Council has (around $3 billion), depreciation expense reflects a significant cost and accounts for 28 per cent of Council’s operating budget.

General rates are crucial to the operation of Council and the many Council services that help to build our community and make it a vibrant and welcoming place to live.

For example, for every $100 residents pay in general rates, Council spends:

• $47 on roads, drainage and pathways
• $19 on parks, sports and natural environment
• $16 on community services and disaster management
• $8 on events, arts, culture, tourism and community facilities
• $4 on corporate services and governance
• $3 on development
• $1 on health and regulatory services
• $2 on economic development and Bundaberg Airport

Households which receive services for water, wastewater and waste collection pay direct charges – that is, if you don’t have these services, you don’t pay for them. But every household pays a general rate.

General rates are crucial to the operation of Council and the many Council services that help to build our community and make it a vibrant and welcoming place to live. This includes the roads which connect our community, parks, libraries and even community events. In Bundaberg Regional Council’s case, it also includes art galleries, a theatre and community services like neighbourhood centres.

If Council didn’t collect a general rate, it would not be possible to continue to offer these valued services to our community which are such a big part of what makes our region a great place to live, work, play and invest.

It is difficult to make a meaningful comparison between one Council’s rates and another’s because there are so many unique factors which make up each community. Due to the sheer size of our region we have a lot of infrastructure and facilities to care for but not as many ratepayers as some other areas to contribute to its upkeep.

For example, the Bundaberg Region has 16.47 people per square kilometre compared to somewhere like Brisbane City which has 1,022 people per square kilometre.

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It is fairer to make some adjustment for the fact that rates on investment properties are tax deductible, whereas properties which are owner occupied are not.

Many other Council’s already charge a different rate for this category and Bundaberg Regional Council’s 2025-2026 rates for non-principal place of residence are still lower than the average mark-up in other areas.

Local Government legislation specifically validates this form of rating category.

A new rating category has been introduced for Transitory Accommodation which are residential homes being made available for tourists and visitors (such as AirBNB).

Due to its use as a holiday rental it is fairer for these properties to pay rates which are closer to other forms of tourist accommodation.

It is also fairer to make some adjustment for the fact that rates on investment properties are tax deductible, whereas properties which are owner occupied are not. 

Retirement and lifestyle villages pay rates on one parcel of land not the number of properties which are on it.

General rates pay for community services like libraries, galleries, parks and community events (not to mention all the roads and pathways you use to get there!).

Previously this has averaged about $201 per independent living unit while an urban residential pensioner pays at least $738 for the general rates after receiving the pension rebate.

By introducing a new rating category for these types of developments Council can phase in changes so these villages can pay a fairer share, which in the 2025-2026 financial year will equate to, on average, $360 per independent living unit with some properties in this category increasing by just $30 per year.

The rates are levied on one parcel of land and how these costs are distributed or applied to residents is a decision of the operator.

Lifestyle villages can be commercial, in which case the rates are tax deductible, or they could also be not-for-profit, which would mean it is non-taxable.

Shopping centres between 3,000 and 20,000 sq m are paying significantly less in rates than larger centres. There will be two new categories for the centres not currently captured because it is fairer for large retail and shopping centres to pay a similar average on a square metre basis and make a meaningful contribution to the roads and other Council facilities servicing these properties. It is also fairer to make some adjustment for the fact that rates on commercial properties are tax deductible, whereas properties which are owner occupied are not.

Some commercial properties have an additional dedicate fire service water connection, which has only been charged at the price for the smallest pipe size regardless of the actual size.

However considerable Council water infrastructure is required to be maintained to provide the necessary water pressure if there is a fire.

Dedicated fire service connections with a pipe size of 40 mm diameter and above will now be charged in accordance with the government guidelines based on pipe size.

The Queensland Government requires Councils of our size to charge what they call “full cost pricing” for sewerage services.

Council’s rating charges underwent an independent review which determined the charges for these services in the Bundaberg Region were relatively low, both compared to neighbouring Councils and in meeting those government requirements.

The increases to the fees for this service in the 2025-2026 budget bring the charges in line with government rules and ensures the service remains sustainable.

The Queensland Government has introduced a waste levy which aligns with its targets to achieve zero waste to landfill.

To date residential waste to landfill has been exempt from the levy because the State Government was making advance payments equivalent to the levy amount payable by Council.

The State Government has begun reducing those payments to transfer the cost of the levy to the residents generating the waste.

When fully implemented, this will increase the cost of waste disposal by millions of dollars each year.

The Queensland Government also requires Councils of our size to charge what they call “full cost pricing” for waste management services.

Council’s rating charges underwent an independent review which determined the charges for these services in the Bundaberg Region were relatively low, both compared to neighbouring Councils and in meeting those government requirements.

The increases to the fees for this service in the 2025-2026 budget bring the charges in line with government rules and ensures the service remains sustainable.

The Queensland Government requires Councils of our size to charge what they call “full cost pricing” for water services.

Following an independent review it was determined that Council was previously only recovering the cost for the treatment of bulk water and not the cost of maintaining the infrastructure to provide it.

This required a review of the fee structure and resulted in an increase which brings the fees more in-line with the market price.

Full-cost pricing, as defined by the Queensland Treasury Corporation, requires that revenue generated meets the full cost of providing the service, not just the day-to-day operating cost. This full cost includes return on assets, depreciation, operating expenses and tax equivalents where applicable.

A surplus of about 5% of our total budget is our target because in order to look after what we have, we need sufficient funds to make investments in maintenance and the provision of services for our growing community.