Brisbane ratepayers will face an above-inflation rate rise of 3.8 per cent next financial year under Lord Mayor Adrian Schrinner’s first budget since winning re-election in March.
Mr Schrinner handed down a $4 billion budget on Wednesday, as he also announced plans to overhaul the way short-stay accommodation is regulated in Brisbane by introducing a permit scheme.
The average rates hike of 3.8 per cent for owner occupiers is slightly above Brisbane’s most recent annual inflation rate of 3.4 per cent – and means the average bill will increase by about $2 per week.
In his speech to the council chamber, Mr Schrinner described the increase as an “extraordinary result in the current climate”.
“Of course, this follows an increase of just 3.45 per cent last year, which was well below the 5.4 per cent average of our neighbouring south-east Queensland council,” he said.
“We’ve done the hard work to trim council spending by 10 per cent under our sensible savings plan – a plan we announced before the election.
“Without that plan, rates today could have increased by as much as 32.6 per cent.”
Council fees and charges will also increase, on average, by 3.8 per cent next financial year.
The total size of the 2024-25 budget will come in at about $4 billion and includes an infrastructure spend of almost $1 billion.
Net debt for the 2023-24 financial year is expected to be about $3.49 billion, before climbing to $3.7 billion in 2024/25 and then dropping to $3.64 billion in 2025/26.
New permit scheme for short-stay accommodation
Mr Schrinner also unveiled the findings of a taskforce he established last year to investigate the short-stay accommodation market in Brisbane.
The lord mayor confirmed his council would accept the taskforce’s recommendations, including a proposal to introduce a permit scheme under a new local law.
The proposed permit changes — which would need state government approval — require owners to nominate a property manager to be available seven days a week to respond to complaints.
Property owners who lease their home on the short-stay market would also need to prove they have planning permission before being granted a permit.
It also means home owners in low-density residential zones would likely be barred from getting a permit and leasing their property on platforms such as Airbnb.
Mr Schrinner said the council has estimated that at least 420 homes are being used for short-stay accommodation in low-density Brisbane suburbs that would not meet those planning requirements.
“While a large part of regulating short-stay accommodation falls outside the jurisdiction of local governments, I hope we can work with the state government to introduce sensible changes,” he said.
“This will allow us to strike a better balance for our residents and visitors, and provide a model for common-sense regulation of this sector, which can be replicated across the state and beyond.”
The council introduced a rates surcharge on short-stay properties two years ago, which will continue in the next financial year.
Mr Schrinner indicated the permit would come at a cost, but the council was yet to determine what that would be.