Chamber Seeks Greater Transparency Following Commercial Rate Increase in Council Budget

The Whitsundays Chamber of Commerce and Industry is seeking clarity and further consultation following Whitsunday Regional Council’s adoption of its 2025–26 Budget, which includes a 21% increase in general rates for commercial and industrial properties and a 5% rise in utility charges.

Chamber President Allan Milostic said that while the Chamber acknowledges the challenges facing local government, the scale of the increase presents a significant concern for the business community.

“We recognise the need for long-term rating reform and welcome Council’s focus on residential rate relief and infrastructure investment,” Mr Milostic said.

“However, the business sector is already managing rising wage, superannuation, insurance, and operational costs. The magnitude of this increase warrants closer examination.”

The Chamber supports Council’s efforts to modernise its rating framework but believes further transparency is needed to understand how cost savings have been achieved and how commercial rate revenue will be used to support the region’s broader economic development.

“In a time of flat productivity and cost-of-living pressure, small and medium enterprises in particular face tight margins,” Mr Milostic said.

“These increases will be difficult to absorb without potential downstream impacts on pricing, investment, or employment.”

The Chamber is encouraging Council to:

• Provide clear information on operational efficiencies and the reinvestment of commercial rate revenue;
• Demonstrate the value proposition for commercial ratepayers in terms of service delivery and infrastructure outcomes; and
• Engage in structured consultation on future rating adjustments to ensure they support sustainable growth and confidence.

“We see this as an opportunity for constructive dialogue,” Mr Milostic added.

“It’s essential that businesses and Council work together to ensure rates are fair, transparent, and supportive of long-term economic resilience.”

The Chamber will continue to advocate for policies that foster a fair and productive operating environment for all local businesses and support sustainable regional development.

Response from the Whitsunday Regional Council

The Chamber was grateful to receive a response on 8 July 2025 from the Council and is shared here verbatim.

Where cost savings and efficiencies have been identified across Council operations for 2025/26;

Council continually reviews services and efficiencies throughout the year, this is then factored into each budgeting process. Some significant cost savings and efficiencies were found in the development of the 2025/26 budget through a number of Function Roadshows with Councillors. This process targeted service level reductions and efficiencies in order to manage the competing pressure of increasing costs of services across Council. These savings were partially offset by the substantial increasing cost of materials, contractors, labour and estimated decreases in the revenue received from interest and Financial Assistance Grant from the Federal Government.  

How increased commercial rate revenue will be reinvested locally:

Where practical, the procurement and contract spend is maximised within the region with non-region spend influenced by core expenditure like electricity and insurance. The “How every $100 helps” shows how Council invests the general rate revenue from residential and commercial ratepayers back into the Community to provide the core services, such as; roads, carparks, footpaths, parks, pools, libraries, local regulation, and planning services.  Further information can be found in Council’s Budget Brochure: https://www.whitsundayrc.qld.gov.au/downloads/file/1743/budget-brochure-2025-26

Whether there’s scope for deeper consultation with the business community for a more phased approach going forward:

This has been identified in Council’s Corporate Plan to build strong relationships and engagement which meets community expectations. This will be discussed with the Mayor and Councillors for consideration during upcoming budget processes.