Call for clarity in rates policies

QUEENSLAND councils have been told to be more transparent with residents about setting rates after a report found many fail to effectively explain how the cost is determined.

The Queensland Audit Office assessed a selection of unidentified councils’ processes for setting rates and charges, and their revenue policies.

A report handed down by Auditor General Brendan Worrall this month said councils “walk a fine line” when balancing competing rate setting principles such as financial sustainability against fairness and equity.

“( Queensland councils) have significantly more autonomy than councils in other states,” he said.

“With this autonomy comes the responsibility to be very clear about how and why rates decisions are made.”

Mr Worrall recommended all Queensland councils implement “appropriate community engagement” to improve the understanding of rates decisions.

“This lack of transparency can lead to a distrust in local government rates practices,” he said.

Townsville City Council chief financial officer Matt Thomson said the council was working through the audit report and recommendations.

“Councillors undertake regular community engagement forums and council always welcomes feedback from the community,” he said.

“Council is also about to start its Community Council program to bring the decision making process right into the suburbs and make it easier for residents to engage.

“There are also several other open council initiatives being implemented, which will ensure more information is available to the community through tools such as online dashboards.”

Local Government Association Queensland spokesman Craig Johnstone said part of the reason rate categories varied so much across the state was because the communities were very different.

“Councils set rates and charges to ensure they best serve the needs of the community and reasons vary from council to council,” he said. “It’s difficult to have a uniform template and there are a lot of requirements on council to demonstrate financial stability.

“The report isn’t saying councils are failing to be sustainable, just that councils can do a better job of explaining to their community how and why they set the rates and charges they set.”