A Queensland council has blamed spiralling costs and stagnant growth for a record rate increase.

The financially struggling North Burnett Regional Council raised general rates by 25 per cent in its $69-million, 2025-26 budget delivered on Monday morning, surpassing Townsville City Council's recent 20 per cent increase for some owner-occupiers.

All separate charges, such as sewerage, water and waste, as well as and levies for local disasters, natural resource and landfill management have increased by 19 per cent.


Mayor Les Hotz said the increase – which would amount to more than $800 per year for residential ratepayers – was necessary to pay for council's utilities and services without relying on additional government grants.


He said the added revenue from the increased rates and fees would shave about $2.6m off the council's deficit and bring it down to about $8m at the end of this financial year.

"We're just trying to meet the costs without having to reach out and ask our state and federal government to assist," he said.

"I'm sympathetic toward the the ratepayer that is struggling, the pensioner and those that do not have work.

"It's going to be a big hit."




Pensioner Colin Boot was in the public gallery for the budget meeting at Gayndah Community Hall.

The 81-year-old Gayndah resident said he would have to cut down on other expenses.


"I just can't see where we're going to get that extra money … the only thing I can see is [cancelling] insurance," Mr Boot said.

"Ten per cent — we would have coped with it somehow, but 25 per cent?"

Resident and former councillor Dael Giddens said families would likely cut back on after-school activities.

"You might have had the kids playing cricket and soccer and doing swimming," she said.

"They may only get to choose one, so unfortunately that will have an effect on our children."


Nationwide problem

The North Burnett region is one of the largest in the state, covering almost 20,000 square kilometres and a total of more than 4,800km of sealed and unsealed roads owned by the council and the state government.

Chief executive Craig Matheson said council's approach to the budget was guided by previous community consultation that "unequivocally showed" that residents wanted existing services retained.

"It was a challenge, but we knew without a doubt what the community wanted," he said.

Mr Matheson said costs had increased by 10 per cent in recent years but the ratepayer base of 6,323 properties had only grown by one per cent in the last decade.


"I've spoken with people who are going without medication because they just can't make ends meet," she said.

"It's definitely a problem that has been imposed on us by the current climate and it's not just a North Burnett Regional Council problem — it is Australia-wide."


Deputy Mayor Melinda Jones voted against the budget but was in favour of raising fees and charges.

"We've weathered fires and floods and now we need to weather something else — the cost of catching up," she said.

"Kicking the can down the road will just hand the problem to our children."

The budget's long-term forecast indicates that the council's cash reserves will dwindle to less than one month's operating expenditure before rising above the target of four months by 2032-33.

Local Government Association of Queensland (LGAQ) chief executive Alison Smith said the rate increase showed councils had "reached a tipping point" beyond which they could no longer pay for community services.

Written by Nikki Sorbello, Tayla Larsen and James Taylor, ABC News.