Feedback opens on proposed Annual Budget and Annual Plan
Published on 03 April 2025
The City of Launceston is excited to launch community consultation this week on its draft 2025/26 Annual Budget and Annual Plan, inviting residents, businesses, and organisations to shape a bold vision for our city’s future.
This proposed budget blends fiscal responsibility with transformative investments, delivering a proposed $32 million capital works program and innovative projects to enhance liveability, boost economic growth, and strengthen community resilience.
The draft budget forecasts an operating surplus of $807,000, with an underlying deficit of $649,000, reflecting a strategic balance between rising operational costs and ambitious community-focused initiatives.
To fund these priorities, a general rates increase of 6.7% has been proposed — equating to roughly $2.30 per week for the median residential property — slightly higher than anticipated in the Council's Long-Term Financial Plan.
This adjustment, driven by inflationary pressures and increased labour and material costs, is aimed at ensuring the Council can maintain high-quality services while delivering projects that will benefit Launceston for generations.
"We’ve worked hard to keep rate increases modest in recent years, but the economic landscape has shifted," said City of Launceston Mayor Matthew Garwood.
"Our long term financial planning couldn’t fully predict today’s economic challenges. Labour costs have risen with a 5 per cent staff pay increase from July 2026, tied to a new Enterprise Agreement, and new roles have been added to enhance services."
Mayor Garwood said materials and services costs had also climbed due to inflation, alongside the need to fund game-changing projects like the second stage of the Launceston City Heart Project and other upgrades.
"Savings in electricity and water usage have offset some pressures, but the proposed 6.7% rate increase is aimed at ensuring we can deliver this ambitious agenda without compromising essential services like waste collection, road and stormwater maintenance, upgrades and maintenance of our existing recreational facilities including parks, the Launceston Aquatic Centre and our sporting facilities, and public health programs," he said.
"This budget is about more than numbers — it’s about safer roads, thriving public spaces, and a city that attracts talent and visitors. "Our strong financial position, achieved in 2024/25, gives us a solid foundation to invest confidently.
"We’ve kept the proposed rate impact as low as possible while planning to meet these unprecedented demands.” "This budget reflects the reality of rising costs — think labour agreements, utilities, and construction materials — while seizing the opportunity to invest in our city’s future. "It’s about shaping a future for Launceston that’s vibrant, sustainable, and ready for growth, and we want your input to get it right."
Mayor Garwood said the Council's draft Annual Plan was built on the same pillars as the 10-year Strategic Plan — Prosperity, Place and People.
"The draft Annual Plan contains a number of specific actions for our Council to take across a wide range of important areas like housing, events, population growth, transport, heritage, public open spaces and much more," he said. "The draft Annual Plan lays out the strategic priorities of our Council over the coming year and how we can work together to build on those themes of 'Prosperity, Place and People'." Highlights of the proposed 2025/26 budget and Annual Plan:
• Revitalising Cultural Icons: Launching a $6.4 million landmark upgrade of the Princess Theatre and Earl Arts Centre, plus advancing the Queen Victoria Museum and Art Gallery (QVMAG) Futures Plan, and investing $2.5 million in improving customer experience at the Town Hall, ensuring these treasures serve our community into the future;
• Invigorating the CBD: Investing $5.5 million for the Launceston City Heart Place Plan, making our CBD more accessible, green, and inviting for locals and visitors alike. • Greening Our City: Investing $200,000 in the Urban Greening Strategy and rolling out the Street Tree Masterplan to create cooler, more inviting public spaces and addressing climate change.
• Planning for Growth: Supporting housing with the Alanvale and St Leonards/Waverley Neighbourhood Plans, including planning scheme amendments to enable 4,300 new homes by 2035 and investing $2 million for stormwater infrastructure in residential growth areas, paving the way for sustainable housing expansion.
• Boosting Tourism and our Nighttime Vibrancy: Investing $500,000 for new events and activations, sparking community connection and boosting tourism, activating Brisbane Street Mall with events and art installations, and undertaking research on drivers of our night-time Economy to enhance the city’s after-dark appeal.
• Strengthening Resilience: Developing a Flood Mitigation Plan with $150,000, alongside enhanced flood intelligence systems to protect our community.
• Renewal of our road system: Investing $4.3 million for road resealing and resheeting, ensuring safer, smoother travel across the city.
Community engagement on the draft Annual Budget and Annual Plan starts this week and runs until Wednesday, April 30, 2025.
We’re eager to hear your thoughts on how this budget can best serve Launceston.
Visit tomorrowtogetherlaunceston.com.au to review the draft budget and Annual Plan and share your feedback.
"We know cost-of-living pressures are real, and we’re here to help," Mayor Garwood said.
"Flexible payment options and hardship assistance are available — please reach out to our Customer Service team at 03 6323 3000 or contactus@launceston.tas.gov.au if you need support."
Let’s shape Launceston’s future together— your voice matters!