Developer charges to rise as growth costs soar

Fraser Coast Regional Council is increasing infrastructure charges on developers to help cover the cost of roads, water and services needed to support the region’s rapidly growing population.

Mayor George Seymour said while growth brought many benefits, it also came with significant infrastructure demands.

“Council expects to collect about $4.5 million in rates from new properties in 2025/26, but the cost of delivering services and infrastructure to those areas is more than $7.2 million,” Cr Seymour said.

“Over the next decade, developer charges won’t even cover half of what’s needed to build the infrastructure our growing region needs.”

To help reduce this gap, Council will increase its developer infrastructure charges to the maximum allowed under Queensland legislation - $34,500 per lot, up from $32,000 in Hervey Bay and $19,000 in Maryborough.

“These contributions help fund essential infrastructure like roads, sewerage systems and stormwater drainage – the things every new home and business depends on,” Cr Seymour said.

“But even at the maximum rate, developer charges alone aren’t enough. In regional Queensland, the charges only cover about 39 per cent of the cost of delivering trunk infrastructure.

“The State Government’s capped charging framework hasn’t kept pace with rising construction costs and hasn’t been properly indexed since 2011. That’s left Councils across Queensland facing a $2.2 billion infrastructure funding shortfall over the next four years.

“That’s why we are strongly advocating for changes to the trunk infrastructure funding framework and seeking support from other levels of government to help us deliver priority projects like a new Fraser Coast water grid, upgrades to major roads, and new community facilities.”

Cr Seymour said Council would also be reviewing the types of development it incentivises in future to ensure they are the right types in the right locations, aligned with Council’s long-term growth and financial planning.

Significant planning work is underway, with a major study earmarked for the Nikenbah-Dundowran growth corridors, to ensure new communities are supported by well-planned and cost-effective infrastructure.

“Council is not against growth - but it has to be well-managed, and it has to be fair. Growth doesn’t pay for itself, and ratepayers cannot be expected to carry the full cost,” Cr Seymour said.