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

There is anger among Sunshine Coast residents after two years of large rates rises. (ABC News) Residents in Queensland's Sunshine Coast have copped a second consecutive major rate hike. The council lifted rates by 22 per cent in the past two years, but still faces a $7 million deficit. The council will cut 130 jobs to save $15 million, while one councillor suggests implementing a tourist tax. Link copiedShareShare articleOne of Queensland's biggest councils has slapped residents with a huge rates hike for the second consecutive year, as the council slashes 130 jobs amid ongoing cost blowouts and budget deficits. Ratepayers on the Sunshine Coast will be slugged hundreds of dollars extra from July, after councillors unanimously approved a 10 per cent rate hike during a budget meeting this week. The increase follows an 11 per cent hike last year, and still leaves the council staring at a $7 million deficit. While Victoria and NSW have a legislated cap on rate increases, the Sunshine Coast is among several Queensland councils struggling to contain spiralling expenses. Sunshine Coast Mayor Rosanna Natoli warned there was still more pain to come. "Nobody likes this budget, nobody wants to deliver these sorts of rates rises," she said. Rosanna Natoli says the council's service delivery costs have jumped 30 per cent in four years. (ABC News: Amy Sheehan) "We've made sure we look at every single dollar and line item in the budget and ask the question, 'Is this what our community needs?'" Cr Natoli said the Sunshine Coast Council had delivered budget deficits for the past five years. "That is not sustainable. We need to be able to get to where we can deliver a surplus," she said. "Nobody wants a council that is wasting money. We really need to be very careful about this." Last year, the council revealed a $20 million black hole due to previous accounting errors. Cr Natoli said the council would be "tightening our belt" with 130 roles to be slashed from the council's 1,900-strong workforce. About 80 people's jobs will be made redundant, while another 50 vacant positions will not be filled and a hiring freeze will continue. The move will save $15 million a year, while the council is also seeking to cut another $30 million. The new Sunshine Coast city hall opened in 2024 in the Maroochydore CBD, costing ratepayers $98 million. (ABC Sunshine Coast: Jennifer Nichols) Dog registration fees will double from $30 a year to $63, to help lift the council's revenue. The annual rates bill for most Sunshine Coast home owners will rise $222 to $2,503 from July. Dozens of angry residents have contacted the ABC, upset about the council's financial performance and a perceived lack of accountability. Cr Natoli said passing on huge cost increases "definitely weighs on me". "This is not something that any of us took easily as a step ... it's not why you stand for office," she said. From July, Cr Natoli's annual salary will rise to $266,942 while the 10 councillors will each receive $162,072. Ratepayer advocacy group Council Watch wants Queensland to follow Victoria and NSW and implement a cap on rate rises. In Victoria, the government limits how much councils can increase general rates and municipal charges each year. That limit has not exceeded 3.75 per cent since rate capping was introduced in 2016, when average rate increases were 6 per cent. Councils can apply to exceed the cap, but such applications are rare. Gerard Brody says councils need to demonstrate have a sound financial management policy. (Supplied: Victoria Essential Services Commission) Chair of Victoria's Essential Services Commission, Gerard Brody, said local governments needed to demonstrate they had exhausted other alternatives and genuinely engaged with ratepayers. "We look at whether the higher cap is an efficient use of council resources and represents value for money and we want to see that councils are engaged in long-term strategy in financial management policies," Mr Brody said. "Councils can apply to the commission for a higher rate cap, and that recognises that the single annual cap that applies across all councils might not be suitable across every council every year." Sunshine Coast councillor Taylor Bunnag criticised the budget and suggested selling or leasing part of the council's swanky new nine-storey headquarters, which cost ratepayers $98 million to build. "There isn't a single person in the community who thanks me or any of my colleagues for sitting in this building," he said. Cr Bunnag also floated the prospect of a "bed tax" for tourist accommodation and an annual fee for short-term accommodation providers. He said visitors should pay for the facilities they use, especially ahead of the 2032 Olympic and Paralympic Games. Daniel Gschwind from the Griffith Institute for Tourism said bed taxes had been successfully implemented in many regions around the world. Daniel Gschwind says tourism tax should be used to imp

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

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