General News
27 July, 2026
Government grants needed
CASSOWARY COAST Regional Council is counting on funding from the state and federal governments this financial year to cover a more than $3 million “non-cash” operating deficit.
The region’s newly adopted $196.8m 2026-27 budget reveals a planned asset depreciation deficit of $3.086m, which it says it hasn’t passed onto ratepayers because it can be offset by external funding.
The strategic decision means ratepayers have saved up to an extra 3.4% increase in general rates or about $60 to $65.
While a deficit of this scale normally triggers sharp increases to rates, council number crunchers have for this financial year, and probably the next few as well, managed to shield households by leveraging major funding commitments from the state and federal governments.
The deficit itself is driven entirely by the declining value and ongoing renewal needs of the Cassowary Coast’s vast network of community assets. However, under the council’s long-term financial sustainability strategy shown in the budget document, the $3.086m accounting gap directly corresponds to external funding already secured for the region’s asset renewal program.
Cassowary Coast Mayor Teresa Millwood confirmed that council chose to use these outside income streams to cover the shortfall rather than passing the burden onto the community.
“The non-cash deficit is solely the cost of our depreciating assets,” Cr Millwood said.
“We’ve deliberately decided to balance the deficit with the external funding we’ve received to renew assets, instead of pushing an extra cost onto ratepayers.”
The announcement comes alongside a record $80.66m capital works program designed to target flood resilience, town centre revitalisation and essential road and water upgrades across the region.
Nearly half of that amount – about $38m – is being sourced from outside grants and subsidies rather than the council rate base.
Crucial to balancing the ledger is nearly $20m secured via the joint state and federal Disaster Relief Funding Arrangements (DRFA), to repair transport infrastructure following recent severe weather events.
A further $9.6m in external cash injections has been directed into regional housing initiatives, specifically supporting the continued development of the Eaton and Daradgee Estates.
By isolating the asset depreciation costs from the general rates calculation, the council has kept owner-occupied general rate increases contained to a 5% rise, aligning with broader economic inflation.
For the vast majority of resident homeowners, that adjustment translates to an average increase of about $90 per year, or $1.73 per week.
Mayor Millwood stated that listening to the direct financial pressures facing local residents and primary producers was a core priority when drafting the $196.8m document.
“In developing the budget, we have listened closely to our community, businesses and primary producers to deliver a financial plan that prioritises investment in the region’s flood resilience, infrastructure and town centres, while at the same time minimising the impost on ratepayers during a time of rising costs,” Cr Millwood said.
Council maintains it remains in a strong overall cash position heading into the new financial year, pointing to a net budget position of $49m heavily underpinned by external state and federal revenue sources.
Its operational blueprint has projected similar structured capital deficits well ahead – to 2032 – as it aggressively pursues outside co-funding models to gradually rebuild and modernise the region’s aging public infrastructure.
Read More: Cassowary Coast