Finance
New rating categories have been introduced to address disparities between charges for people’s homes over properties which have the ability to generate an income.
A rates and charges review has been undertaken for Bundaberg Regional Council’s 2025-2026 budget which identified a number of areas for improvement.
This included the fact that Council had been levying the same rates for residential properties whether or not the ratepayer lived there or if the property was a form of investment with other benefits such as generating income and the rates being tax deductible.
Finance portfolio spokesperson Cr Deb Keslake said the comprehensive independent review put the microscope over each of the categories to address these inequalities with a focus on what’s fair.
“Essentially, it became clear through this review that our average residential ratepayers – mums and dads, pensioners and people who own and live in their own home – were doing the heavy lifting when it came to the payment of general rates,” Cr Keslake said.
“At the end of the day charging general rates is an essential part of the operation of critical community services and we want to apply this in the fairest way possible.
“General rates pay for a range of essential functions of Council from the provision of playgrounds, libraries and community events to dealing with barking dog complaints and all the roads we drive on every day.
“We are keeping the general rates increase as low as we can while maintaining these services and levelling the playing field for investment properties along with other categories which are being calculated differently.”
Changes to categories include:
- Non-principal Place of Residence – it is fairer to make some adjustment for the fact that rates on investment properties are tax deductible, whereas properties which the owner occupies are not. Despite this additional increase, in the Bundaberg Region these rates are still lower than those of similar Councils.
- Transitory Accommodation – it is fairer for residential properties used for short term rental accommodation (such as Airbnb) to pay rates which are closer to other forms of tourist accommodation instead of the same amount people pay for their own homes. The rates on these properties may also be tax deductible.
- Retirement/Lifestyle Villages – retirement and lifestyle villages pay rates on one parcel of land not the number of homes which are on it, averaging about $201 per resident. In contrast, 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, $252 per independent living unit. For some properties in this category this will mean an increase of just $30 per year.
- Large retail properties – it was also identified that shopping centres between 3,000 and 20,000 sq m were paying significantly less in rates than larger centres in the region. 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. The rates on these properties are also tax deductible.
Cr Keslake said there would be an overall general rates increase of 6.49% for residential properties.
“This will ensure Council can continue delivering services and maintain community infrastructure while also striving to keep moving in the right direction financially,” Cr Keslake said.
“For the average urban residential ratepayer this equates to an increase of $1.86 per week on their general rates.
“After years of keeping some rate rises below CPI, despite rising costs, Council can no longer absorb the pressure.
“A rates adjustment is now essential to maintain the standard of services our community expects and relies on.”
Find out more about the 2025-26 budget here: Budget | Bundaberg Regional Council
