City of Hobart adopts responsible 2026–27 Budget with low rate rise

Published on 30 June 2026

The City of Hobart has adopted its 2026–27 Budget, delivering a $3 million surplus while keeping rate increases among the lowest in Tasmania.

The Budget includes total revenue of $188.9 million and expenditure of $185.9 million, alongside a modest 3.5% rate increase.

Hobart Lord Mayor Anna Reynolds said the City had worked hard to balance cost pressures with affordability for residents.

The 3.5% rate increase is below Hobart’s CPI, which was 5% to the end of April.

Council’s rates reflect the cost of delivering a high level of services and maintaining Kunanyi / Mt Wellington, a major tourism asset largely funded by Hobart ratepayers.

Unlike other councils, local residents carry the cost of this state‑level asset.

The City is actively improving efficiency, identifying more than $3 million in savings in the draft 2026/27 budget and maintaining lower rate increases than comparable councils in recent years and have embarked on a state-leading service review program for the organisation.

The Budget includes a $33.7 million capital works program to support roads, parks, community facilities and other critical infrastructure across the City.

This includes $560,000 for the installation of two new Gross Pollutant Traps to help preserve the Hobart Rivulet, $1.2 million for new spa, sauna and steam room facilities at the Doone Kennedy Hoabrt Aquatic Centre, more than $600,000 on stormwater renewal, and $1.2 million to replace the synthetic track at the Domain Athletic Centre.

While the total capital works budget is slightly lower than last year, the City’s contribution has increased due to a reduction in state and federal grants.

Cr Reynolds said the Budget ensured the City can continue delivering the wide range of services the community relies on.

Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:

“This is a responsible and balanced budget that continues to deliver for our community while keeping rate rises as low as possible.

“We know households are under pressure, so we’ve deliberately kept our rate rise below inflation and below the broader cost pressures facing councils.

“Since COVID, the City of Hobart has taken a disciplined approach to keep rate increases down while continuing to invest in essential services and infrastructure.

“We’re continuing to invest in our city’s infrastructure, even as external funding becomes more constrained.

“The City of Hobart delivers more than 300 services that support residents, businesses and visitors every day.

“That includes everything from school immunisations and assessing development and building applications, to collecting more than one million rubbish bins, 460,000 recycling bins and 250,000 FOGO bins each year.

“It also includes running Salamanca Market every Saturday, Tasmania’s most popular tourist attraction, which brings enormous economic and community benefits to our city, and maintaining Kunanyi / Mt Wellington – Tasmania’s most visited natural tourist attraction.

“Like all councils, we’re facing rising costs, particularly in construction and wages, but we’ve worked hard to manage these pressures responsibly.

“This budget ensures we can maintain services, invest in Hobart’s future, and support our community—while keeping rates fair and sustainable.”