Byron Shire Council says its proposed 35.03 per cent permanent rate increase would still fall short of meeting the full extent of its long-term financial needs.
The admission has come as part of Council’s continuing consultation over a proposed Special Rate Variation (SRV), which would lift ordinary land rates by 12 per cent in 2027–28, 10 per cent in 2028–29 and 9.6 per cent in 2029–30.
Those increases include the annual rate peg and would produce a compounded increase of 35.03 per cent over three years. The higher rate base would then remain permanently in place.
But in responses to community questions, Council has acknowledged that even this increase would not fully address its financial position.
‘Importantly, the proposed SRV does not represent the full extent of Council’s funding need,’ Council said.
‘The financial modelling identifies a larger long-term financial challenge, however the proposed increase has also been informed by considerations of community impact and capacity to pay.’
Council says the proposal represents what it currently considers a reasonable balance between improving financial sustainability and limiting the impact on ratepayers.
It has also acknowledged that some of the modelling underpinning its financial strategy is still being refined.
‘Further work is being undertaken to refine modelling for some asset classes and expenditure requirements,’ Council said.
The broader Financial Sustainability Review is also continuing, with Council yet to determine the precise contribution that could come from efficiencies, service reviews, expenditure reductions or alternative revenue sources.
Council’s Long-Term Financial Plan says the SRV would be used to reduce the General Fund operating deficit, increase spending on roads, bridges, footpaths and stormwater infrastructure, improve climate-change resilience and support organisational systems and facilities.
The proposed increase has already generated significant community debate, with residents questioning Council spending, staffing costs, the fairness of the existing rating structure and whether tourism-related costs should fall more heavily on visitors and businesses.
Council has not yet decided whether it will make a formal SRV application to the Independent Pricing and Regulatory Tribunal.
It says further asset modelling, the Financial Sustainability Review and any changes to financial assistance grants will be considered before that decision is made.
Public consultation on the proposed increase remains open until October 30.
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