City of Launceston Council has formally endorsed the organisation’s proposed 2025/26 Annual Budget at a meeting today.
The adopted budget includes a 5.7% general rates increase — down from the originally proposed 6.7% increase — after Councillors took into account feedback from the community regarding current cost-of-living pressures.
The Council’s 2025/26 Annual Budget outline key investments in infrastructure, community programs, and services to support Launceston’s growth and resilience.
The $150 million budget will support the delivery of more than $34 million in capital works and a continued investment in infrastructure renewal, cultural venues, housing growth, tourism, and flood mitigation, while also responding to rising operational costs caused by inflation and material and labour shortages.
Mayor, Matthew Garwood said the endorsed budget was financially responsible and prioritised the needs of the community.
“We’ve listened to your concerns about the current cost of living pressures and reduced the proposed rates increase to 5.7 per cent,” Mayor Garwood said.
“This budget positions Launceston for long-term sustainability while continuing to invest in the infrastructure, services and placemaking initiatives that make our city an exceptional place to live, work and visit.”
The Council has opted to proceed with a modest deficit in 2025/26, which officers have described as a responsible and manageable decision in the current economic climate.
A revised long-term Financial Plan will guide the return to a balanced budget.
Key investments in the adopted capital works program include:
- $6.4 million for Princess Theatre and Earl Arts Centre upgrades and QVMAG Futures Plan;
- $5.5 million for Launceston City Heart Place Plan and CBD improvements;
- $200,000 for Urban Greening Strategy and Street Tree Masterplan;
- $2 million for stormwater upgrades in Alanvale and St Leonards/Waverley to support housing;
- $500,000 for new events and activations to boost visitation and night-time economy;
- $150,000 to develop a citywide Flood Mitigation Plan;
- $8.3 million for road resealing, reconstruction and upgrades;
- $1.1 million for footpath reconstruction.
The Council says it is pursuing a range of strategies to help manage operational costs, including service level reviews, resource realignment, and technological efficiencies, underpinning its new Strategic Plan focused on ‘Prosperity, Place and People’.
“Moving forward we expect to improve our service delivery through operating efficiencies and driving a culture of innovation to help maximise these opportunities,” Mayor Garwood said.
“Thank you to everyone who took part in the consultation process — your feedback shaped this budget, which responds to today’s challenges while setting Launceston up for a strong and vibrant future.”
