The City of Gosnells is proposing a rates increase of up to 5.5 per cent for the 2026/27 financial year, but councillors have requested further budget scrutiny and cost-saving options before a final decision is made.
At its May 26 meeting, council endorsed advertising proposed differential rates and a minimum rate for public consultation, with the final increase to be determined when the budget is adopted later this year.
Mayor Terresa Lynes said the proposed increase was linked to inflation.
“The city is proposing a rate increase in line with CPI to the end of May, capped at 5.5 per cent,” she said.
“If CPI at the end of May is lower than 5.5 per cent, the proposed rate increase will also be lower.”
The proposal follows discussions at a March budget workshop, where staff prepared a draft budget based on inflation of about 3.8 percent.
Mayor Lynes said inflation later rose to 4.6 percent, increasing pressure on council finances.
“It was clear during the Workshop discussions that if inflation continued at that level, a higher rate rise would be required to maintain services and meet rising costs,” she said.
She noted inflation fell to 4.2 percent in April and said the final increase was likely to be lower than 5.5 per cent if that trend continued.
According to the City, a 5.5 per cent increase would add about $1.69 per week to the rates bill of an average residential property.
Mayor Lynes said the city was facing rising costs across a range of services.
“Particular cost pressures are being experienced in areas affected by fuel prices including waste collections, parks maintenance, mowing, and road construction and maintenance,” she said.
The city is also proposing a new differential rate category for certain vacant residential land.
Under the proposal, vacant non-rural land that has remained in the same ownership for at least two years without a building permit or subdivision approval would be charged at double the general residential rate.
Mayor Lynes said the measure was intended to encourage development and increase housing supply.
“With housing availability remaining a significant challenge, the city is seeking to encourage development that will increase the supply of houses, particularly affordable houses,” she said.
Mayor Lynes said about 330 properties would be affected by the proposed category.
The proposal led to several amendments from councillors before the motion was passed.
Cr Saiful Islam successfully moved an amendment requesting a detailed draft budget be presented to council before the final budget is adopted.
“My concern was that Council was being asked to consider a proposed 5.5% rate increase before seeing the full draft budget,” Cr Islam said.
“I do not believe councillors should be asked to support a rate increase without first having a clear picture of Council’s finances.”
He said council should review spending and identify savings before deciding how much additional revenue was required.
“A rate increase should be based on Council’s actual financial needs, not simply because inflation has increased,” he said.
Cr Islam said residents wanted reassurance that every effort had been made to minimise any increase.
“Many residents have told me they are struggling with rising household costs, including groceries, electricity, insurance, fuel, rent and mortgage repayments,” he said.
“They understand that Council faces cost pressures as well, but they want assurance that every effort has been made to keep any rate increase as low as possible.”
Council also supported an amendment from Cr Serena Williamson calling for broader community consultation and an examination of what budget changes would be needed to limit the increase to four per cent.
Cr Williamson said residents should have access to clear information about the proposal and how ratepayer funds would be spent.
“The amendment was really about going a step further than the minimum requirements and making sure our community has clear information about the proposed rate increase and how ratepayer money will be spent,” she said.
She said many households were already dealing with rising costs.
“For many families, even a small increase in rates will be noticed as families are already dealing with cumulative impact of increases in food, fuel, housing, utilities and interest rates,” she said.
Cr Williamson said she wanted council to explore whether savings could be found without affecting essential services, public safety or future budgets.
“The amendment was about seeing whether we could find a way to bring the increase closer to 4 percent while continuing to deliver the services our community expects,” she said.
As part of the adopted motion, the city will advertise the proposed increase through multiple channels, publish budget information online and provide additional ways for residents to make submissions.
Public consultation will run for three weeks, with submissions closing on June 26.
The proposed rates and minimum rates will now be advertised for public comment. Council will consider community submissions, review the draft budget and determine the final rate increase when it adopts the 2026/27 budget.
Mayor Lynes said council would continue reviewing the budget before making its final decision.
“Council will continue to carefully review the budget to ensure the best possible outcome for the community while maintaining the services and facilities residents rely on,” she said.
