Recently, I noticed claims circulating online suggesting Hobart’s rates are a “Rip Off”. A mysterious front group with a generous donor is paying for advertisements and billboards to smear the City of Hobart’s work.
These headlines are not only factually incorrect but are misleading - and I want to explain why.
Firstly, something can only be described as a “rip off’ when a customer is getting very poor products or services in return for the money they are paying. That is not the case in Hobart.
The City of Hobart delivers more than 300 services each year, supporting residents, businesses and visitors alike. This includes everything from school immunisations, to assessing 685 development applications (issuing 509 permits) and 643 building applications (with 618 issued), to collecting more than one million rubbish bins, and over 460,0000 recycling and 250,000 FOGO bins, to running Salamanca market every Saturday, Tasmania’s most popular tourist attraction.
The City of Hobart collects more than one million rubbish bins each year.
While Hobart’s rates may be higher than some other councils, there are some important reasons for this, that are often overlooked, particularly during political campaigns.
1. Supporting a big group who don’t pay rates
The City of Hobart hosts the overwhelming majority of 1.7 million visitors per year to the city and the 37,000 thousand workers who come into the city each day. We subsidise the maintenance and operation of many regional and statewide facilities, such as the southern Tasmania’s aging Aquatic Centre which hosts over 600,000 visitors a year, many of which aren’t from this municipality.
2. Lack of Grants
Unlike many councils, Hobart receives very little operational or capital grant support from state and federal governments. In 2024-25, we received just $3.9 million in operational grants, around 2.3% of our operating costs. Compare that to Launceston, who received $7.5 million or 4.7% of its operating costs, Glenorchy City who received $4.9 million or a similar sized mainland councils like Albury, which received $8.2 million, around 5.9% of its operating costs.
This trend is not a one off. In terms of capital grants between 1 July 2020 and 30 June 2025 the City of Hobart received $19.3 million in grants towards city infrastructure projects, while Launceston received $28.1 million and Devonport $35 million. This under investment means Hobart must rely heavily on its own funds to improve and maintain facilities and infrastructure in the city.
3. Doing the Job of State Government
There are many examples of the Hobart ratepayers stepping in to fund services and infrastructure, when in many cases, would typically be supported by the state government. The biggest example of this cost shifting is the ongoing management of Tasmania’s most highly visited natural place, Kunanyi / Mount Wellington. Despite the shared management of under the Wellington Park Management Trust, Hobart ratepayers shoulder the cost – around $5 million annually. We have also paid for infrastructure such as the upgrade of 1930’s guardrails.
We’ve also picked up the tab as state governments look for cuts – everything from the road markings that used to be paid for out of registration fees, to providing homelessness support, to funding multicultural events that in other states receive state grants.
And we pay for decisions made by state government that have an impact on our budget, like choosing to exempt certain property types from paying rates and poorly regulating others (like visitor accommodation).
And there are major structural differences in funding arrangements that have a huge impact. For example, in Sydney and Melbourne, their colonial stormwater pipes are upgraded by state supported agencies, Sydney Water and Melbourne Water. In Hobart, this work comes back to local government at a cost of tens of millions.
City of Hobart road crew working on Doyle Avenue in Lenah Valley earlier this year.
In other states, local governments are permitted under state law to receive public infrastructure contributions from major developers. A right that does not extend to Tasmanian Councils.
It’s easy to glance at a headline and assume Hobart’s rates are ‘unreasonably high,’ but the reality is far more nuanced. No two councils manage the same mix of services or assets, and each operates under different funding arrangements.
Despite all these hidden pressures we work hard to keep rate increases as low as possible; while continuing to deliver the services and programs our residents deserve value. In the last 5 years Hobart has had an average rate increase of 4%, compared to 4.3% for Launceston, 5.2% for Glenorchy and 5.3% for Kingborough.
I encourage residents to look beyond the headlines, seek accurate information, and consider the value and services behind their rates. We always strive to find the right balance - supporting our community, maintaining essential services, and investing in Hobart’s future.
Anna Reynolds
Hobart Lord Mayor