For the first time in almost 10 years Townsville City Council is set to reduce its Rate in the Dollar (RID) charge as part of the upcoming 2025/26 Budget and Operational Plan.
In Queensland, general rates are calculated by multiplying a property's State Government-issued land valuation by the RID set by each council. With the Queensland Government's Valuer-General issuing new land valuations earlier this year, land values in Townsville have increased by an average of 27 percent.
Acting Mayor Ann-Maree Greaney said Council had committed to lowering the RID by 18 percent to help ease the cost-of-living pressure on households.
"It's important to note that rates do not increase directly in line with land valuations, councils have the ability to adjust the RID to offset these increases," Cr Greaney said.
"We know families and businesses are doing it tough. Council rates are often expected to rise alongside new land valuations, if we had simply adjusted the RID in line with CPI, as many councils do, we would be looking at an average rate increase of around 22 percent citywide. That's simply not something we're prepared to ask of our community.
"We understand the pressures households are facing in the current economic climate. We've felt them too, rising costs in materials, energy, fuel and services have impact Council's own operations."
Councillor Greaney said that's why Council made the decision to reduce the RID ensuring any increase in rates as a result of rising land valuations will be offset by the lower RID.
"Councillors and Council officers have spent the last six months working closely to shape a financially responsible 2025/26 Budget and Operational Plan," Cr Greaney said.
"We've scrutinised every part of the budget to find savings and efficiencies. We're committed to maintaining core services, driving sustainable innovation, and investing in the people and places that make Townsville great, all while improving Council's financial position and easing pressure on ratepayers."
Individual rates will vary depending on how much a property's land valuation has changed. Residents whose valuations increased by less than the drop in the RID may see a reduction in their rates.
Council will adopt its 2025/26 budget at a council meeting on Wednesday 18 June 2025.
To learn more about how rates are calculated, visit How Rates are Calculated.
