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Brisbane City Council households can expect a rate hike in its annual budget next week but it will not be above the local inflation rate of 6 per cent, according to Lord Mayor Adrian Schrinner.
Key points:
- Brisbane Lord Mayor Adrian Schrinner says rates are expected to rise in next week's budget
- He would not reveal by how much, but said the average increase will be below Brisbane's inflation rate of 6 per cent
- Other local councils have also warned residents to be prepared for a rates hike in June
Mr Schrinner would not confirm the exact average rate rise to ABC Radio Brisbane but agreed there was little doubt rates would have to increase.
"At the moment Brisbane inflation is sitting at 6 per cent," Mr Schrinner said.
Last year the council's rates rose 3.75 per cent, adding an average $15.65 per quarter to residential rates.
It was the largest rate rise since the 2016-17 budget, which increased it by 4.7 per cent.
"I'm conscious everything is under pressure at the moment, but as an organisation that builds a lot of things and provides a lot of services, the cost of us doing business is going up significantly," Mr Schrinner said.
His comments come as the Reserve Bank weighs up another cash rate rise on Tuesday as inflation continues to bite into household budgets.
Flood damage bills
Most south-east Queensland councils have been hard-hit by flooding and severe weather damage in recent months, with Brisbane City Council copping a $330 million damage bill.
The cost prompted the council to shelve or delay multiple park and bikeway projects last month as it seeks to recoup that cost, as well as millions of dollars in lost revenue during the pandemic.
Last month, Moreton Bay Regional Council Mayor Peter Flannery, whose region copped a $60-million flood damage bill, warned residents to brace for a rate hike, while City of Gold Coast Mayor Tom Tate said he was focused on keeping rates low in the council's June budget.
Water rates to increase
Some south-east Queensland council rates do not include water bills, which are instead managed separately by Urban Utilities.
Urban Utilities spokesperson Michelle Cull last week confirmed water and sewerage prices would increase by 3 per cent from July 1, adding an average of $6.95 per quarter to Brisbane residential bills, and $7.15 to Ipswich, Scenic Rim, Lockyer Valley and Somerset bills.
Applications for Brisbane City Council's $250 rates rebate for flood-affected residents close on July 15.
Applicable pensioners can claim up to $276 per quarter off their rates bill.
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