Budget

Message from the Mayor

As Mayor, I want to be candid with our community: this has been an incredibly difficult budget to put together.

Unprecedented rising costs for fuel, materials and labour are outpacing revenue across the organisation, and this year’s rate increase reflects real-world cost pressures. This year’s Budget makes necessary decisions, not exciting ones. It is built on transparency and long-term financial stewardship to maintain our essential services.

We have worked long and hard to deliver a $100 million budget that continues our core local government functions and minimises the impact to you, our ratepayers, as much as possible. 

The 2026-2027 Budget includes a 6% increase to general rates, a $42.90 per year increase to waste charges, separate charges are rising by $11.20 per year, and we’ve changed the early payment discount to 5%. Nearly 80% of our total rate base are residential properties and the majority of those properties will pay between $2.73 and $3.09 extra per week.

Importantly, Somerset remains one of the most competitively rated councils in South East Queensland, and we continue to maintain no overdraft facility despite utilising some savings this year to support the budget - an uncommon and sound financial position among comparable councils. Our long-term strong financial management will allow us to weather the uncertain and volatile global economic climate and not be exposed to any significant interest rate changes.

Council is forecasting an operating deficit of $4.1 million in 2026-27. The deficit is due largely to a timing difference in the payment of the Federal Financial Assistance Grant, with 80% ($3.9M) of the 2026-27 grant being paid before 1 July 2026. This is only a timing difference and does not impact the financial sustainability of Council. 

Contributing to the deficit is a deliberate investment in Council’s long-term operational health, directly attributable to the $3.5 million investment into a new corporate management system, partly funded through identified cost reductions and cash reserves. While it’s a back-office system, it’s essential to running a leaner, more accountable and secure council which supports improved financial oversight and protecting the sensitive personal information Council holds on behalf of the community. We have delayed this investment as long as responsibly possible, sparing ratepayers earlier increases. Unfortunately, this investment cannot be delayed any further without placing Council at risk as our current system will soon be obsolete. Our budget forecast projects a return to a balanced budget beyond 2026-27.

This Budget also coincides with the start of our new Corporate Plan from 1 July 2026. Our collective vision for the region: Thriving communities - country lifestyle. This guides our decisions: funding essential services that protect the lifestyle residents value, investing in the operational foundations that help Council deliver for the next five years and beyond, and applying the financial discipline required for our region to thrive. 

We know these decisions aren’t easy in a time when everything is getting more expensive and I thank you for entrusting and empowering your Council to make the right long-term sustainable choices for Somerset.

Mayor Jason Wendt

Somerset Regional Council

Read the Budget Highlights

To read the Budget Highlights brochure click here