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🇦🇺 Australia /Economy & Trade

Sunshine Coast Council hikes rates, slashes 130 jobs as costs spiral

From ABC Australia · () English

Summarized and contextualized by DistantNews.

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  • The Sunshine Coast Council in Queensland will increase rates by 10% for the second consecutive year, impacting ratepayers with hundreds of dollars in extra charges.
  • The council is also slashing 130 jobs from its workforce of 1,900 to save $15 million annually, as it faces a $7 million budget deficit.
  • These measures come amid spiraling costs and a $20 million accounting error revealed last year, with the mayor warning of further pain and the need for fiscal sustainability.

Residents of the Sunshine Coast in Queensland are facing a significant financial burden as the local council unanimously approved a 10% increase in rates for the second year running. This decision, made during a budget meeting this week, will see ratepayers slugged hundreds of dollars extra from July, adding to the 11% hike experienced last year.

Nobody likes this budget, nobody wants to deliver these sorts of rates rises.

— Rosanna NatoliSunshine Coast Mayor Rosanna Natoli commented on the difficult decisions regarding the budget and rate increases.

The council is simultaneously implementing drastic cost-cutting measures, including the slashing of 130 jobs from its 1,900-strong workforce. This move is expected to save $15 million annually, with approximately 80 employees facing redundancy and another 50 vacant positions to remain unfilled. The council is also seeking to cut an additional $30 million in expenses.

That is not sustainable. We need to be able to get to where we can deliver a surplus.

— Rosanna NatoliMayor Natoli explained the necessity of fiscal responsibility after years of budget deficits.

These actions are a direct response to escalating costs and persistent budget deficits, with the council staring down a $7 million shortfall for the upcoming period. This follows the revelation of a $20 million deficit last year, attributed to previous accounting errors. Sunshine Coast Mayor Rosanna Natoli acknowledged the difficulty of the decisions, stating, "Nobody likes this budget, nobody wants to deliver these sorts of rates rises." She emphasized the council's need to achieve a surplus after five years of deficits, warning that "that is not sustainable."

Nobody wants a council that is wasting money. We really need to be very careful about this.

— Rosanna NatoliMayor Natoli stressed the importance of careful financial management.

Compounding the financial strain, dog registration fees are set to double from $30 to $63 annually. The average annual rates bill for most homeowners will rise by $222 to $2,503. While Victoria and New South Wales have legislated caps on rate increases, Queensland councils like the Sunshine Coast are struggling independently to manage spiraling expenses. Mayor Natoli's own salary will increase to $266,942, with each of the 10 councillors receiving $162,072 annually.

This is not something that any of us took easily as a step ... it's not why you stand for office.

— Rosanna NatoliMayor Natoli expressed the personal weight of passing on significant cost increases to residents.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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