IPSWICH City Council will introduce a new infrastructure levy in its 2025-2026 Budget, citing chronic underfunding from state and federal governments and a looming $1 billion infrastructure shortfall over the next decade.

Ipswich Mayor Teresa Harding said the levy announced in this week’s Budget was in response to sustained neglect and mounting costs in the face of a doubling of the population by 2046.

“The money we do collect is not going as far, and infrastructure is costing more to construct and maintain than ever before,” the Mayor said.

Cr Harding pointed to a 14 percent increase in Ipswich’s federal Financial Assistance Grant since 2016 – well below Brisbane’s 31 percent CPI growth over the same period – and a Queensland Transport and Roads Investment Program allocation that ranks second lowest in South East Queensland.

“Ipswich receives the equivalent of $25 per ratepayer out of a funding pool of $1,000 per ratepayer for the region,” Cr Harding said.

“Out of every dollar raised in taxation revenue in Australia, local government’s share is 3 cents.”

Cr Harding also cited a 2023 Local Government Association of Queensland report warning of a $1.5 billion gap between infrastructure charges and construction costs for SEQ councils between 2024 and 2028.

“We want to support growth, but to do so we need investment in infrastructure,” she said.

“Residents need safe, accessible roads. They need fast, efficient public transport.”

The council said Ipswich was carrying a disproportionate share of the region’s growth.

According to Cr Harding, the city has 14,500 residential lots already approved – equivalent to a seven- to eight-year supply – but the State Government wanted that to be delivered in half the time.

“This can’t happen without more infrastructure investment,” she said.

Of the state’s $2 billion Residential Activation Fund, only $250 million was earmarked for South East Queensland – enough to support infrastructure for 10,000 lots, or just two years of Ipswich’s projected needs.

Cr Harding also criticised the state’s cap on developer charges, unchanged since 2011, while construction costs had climbed 44 percent.

“Unfortunately, council has to take action because other levels of government are not,” she said.

The new infrastructure levy is projected to raise $5.4 million in its first year.

Ninety-nine percent of ratepayers would pay $55; properties valued over $900,000 would pay more.

Finance and Governance Committee Chairman Paul Tully said the levy would support infrastructure projects identified in the Local Government Infrastructure Plan, including roads and public open space.

“The levy won’t cover these projects on its own,” he said, “but will be used strategically to supplement infrastructure charges, grants and other funding.”

Ipswich would join five other SEQ councils that already have similar levies, ranging from $30 to $210.

Cr Tully acknowledged the financial burden on households.

“Councillors respect that the bottom line of the bill is critically important to the community,” he said.

“It is important for the community’s confidence to be able to see what these funds will be spent for.”