RATES AND REALITY

Council's Budget Under The Microscope

Mackay Regional Council has handed down a $454 million “back to basics” budget for 2025–26, positioning it as one of the most restrained in Queensland — but not everyone’s convinced.

With a general rate rise of 4.95 per cent, Council says it’s focused on maintaining core services while managing rising costs. Major projects include a $12.99 million investment in the Northern Beaches Community Hub and nearly $6.5 million for critical water infrastructure. Acting CEO David McKendry says the budget delivers “value for money” and transparency, but for many ratepayers, the pressure is already building.

From rural landholders facing sky-high valuations to developers hit with compounding costs, and residents simply trying to make ends meet, the budget’s promise of affordability is being met with mixed reactions.

As cost-of-living stress intensifies, all eyes will be on whether this budget does what it claims: deliver for today, while preparing for tomorrow.

Council Claims Responsible Budget As Cost Pressures Climb

Mackay Regional Council has handed down what it describes as a “responsible” 2025–26 Budget, featuring a general rates increase of 4.95 per cent — a figure the Mayor says places Mackay among the lowest in Queensland.

The $454 million budget, adopted last week, includes $125.6 million in capital works and a raft of spending aimed at “maintaining the fundamentals” — roads, water, waste and community infrastructure. Mayor Greg Williamson said the modest rise, which equates to an average of $3.82 per week for residential ratepayers, was achieved despite “significant increases” in operating costs.

“We’ve worked hard to keep this increase as low as possible, especially when compared to other Queensland councils,” Cr Williamson said.

But while the percentage rise is indeed comparable with nearby councils, it is worth noting that Isaac Regional Council also settled on a 4.95 per cent general rates increase in its own budget last week. Isaac’s overall increase in rates and charges was slightly higher at 5.17 per cent.

Both councils cited inflationary pressures, staff retention costs, and rising insurance premiums as key challenges — as well as a cut to the State Government’s Waste Levy subsidy, which alone has added $1.1 million to Mackay’s waste collection costs.

In Mackay, Cr Williamson said councillors had worked closely with staff to avoid the more dramatic hikes seen in other parts of the state.

“This provides us the opportunity to avoid the significant increases that some of our counterparts have had to pass on to residents,” he said.

While Council maintains that the rise is among the lowest in Queensland, some ratepayers may be left wondering whether the budget offers enough in return — especially as cost-of-living pressures continue to mount across the region.

Back to basics – with a $125M capital works program

Council has repeatedly referred to this year’s budget as a “back to basics” plan, focused on delivering essential infrastructure and keeping services running reliably.

Acting CEO David McKendry said the budget was built around value for money and transparency.

“We want ratepayers to be able to see exactly where their rates go,” Mr McKendry said.

Of every $100 of Council revenue, the breakdown includes:

$31.40 on depreciation and finance costs

$17.33 on water, sewerage and waste

$13.27 on corporate and IT services

$13.01 on roads, bridges, footpaths and stormwater

$9.26 on community programs and facilities

$7.96 on parks and environment

$4.56 on economic development and planning

$1.91 on local laws and animal management

$0.35 on apprenticeships and training

Infrastructure highlights across the Mackay region

The 2025–26 Budget delivers key infrastructure investment across the region, with capital works projects targeting both maintenance and growth.

Among the largest commitments is $12.99 million for Stage 1B of the Northern Beaches Community Hub. This stage will deliver a new district-level library, flexible community rooms, and an outdoor town square with space for events, markets and performances. The hub is positioned as a central gathering place for one of Mackay’s fastest-growing communities.

Another $5.45 million has been allocated for the replacement of Bells Creek Bridge — an essential upgrade to ensure transport and freight resilience in the region’s western corridor.

Council will also spend:

$5.8 million on pavement rehabilitation across multiple suburbs

$6.45 million on water main upgrades to support reliability and pressure consistency

$3.5 million on upgrades to sewerage infrastructure

$2 million in grants and community funding, supporting local groups and projects

$1.1 million on event and conference attraction, aimed at boosting tourism and economic activity

More than $13.8 million has been budgeted for pensioner concessions and rates discounts, a figure Cr Williamson said reflected Council’s ongoing commitment to supporting older residents.

“This is one of the ways we can ease pressure for people doing it tough while still delivering the services our community relies on,” he said.

The decision to cap Mackay’s general rate rise at 4.95 per cent mirrors the move made by Isaac Regional Council, which last week unveiled its own $153.7 million budget. That plan included $69.8 million in capital projects and emphasised affordability and early payment discounts to ease household pressures.

In both councils’ announcements, the tone was one of caution: acknowledging the rising costs of doing business while seeking to maintain service levels and avoid dramatic price shocks for residents. Mackay’s budget includes several references to long-term planning and a need to be “strategic” in its investments.

“This is a budget that delivers for today while planning for tomorrow,” Mr McKendry said.

But while the language is reassuring, residents watching power bills, grocery prices and mortgage payments rise may remain sceptical. The real test, as always, will be delivery — whether roads are resurfaced on time, drains are cleared before summer storms, and long-promised projects, like the Northern Beaches hub, materialise without delay.

The 2025–26 Community Budget Report and Long-Term Financial Forecast are available on the Mackay Regional Council website.

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