Doubled infrastructure funding welcomed, waste levy pause disappoints
Published on 23 June 2026
Queensland households face a growing State Government bin tax after today’s State Budget failed to deliver a pause in the drop in the rebate paid to councils to protect households from paying the waste levy on household waste.
Instead, the Budget papers reveal the levy is poised to bring an additional half a billion dollars in revenue for the State Government over the next four years as impacted households within the levy zone will pay more.
The state’s peak body for Queensland councils, the Local Government Association of Queensland (LGAQ), today welcomed aspects of the Budget that will support councils to deliver for their communities, like the doubling of the Residential Activation Fund.
But the LGAQ is disappointed by the State Government’s decision to keep reducing the upfront waste levy annual payments to councils that are designed to offset the cost of its bin tax to households.
“The State Budget is putting more waste levy pressures on ratepayers - while delivering a projected revenue windfall to the government of $569.7 million over four years.
“Millions of Queenslanders living within the levy zone now will now continue wearing an increasing State Government bin tax on their rates bills.”
Ms Smith said the LGAQ will continue to support councils and campaign against the bin tax while advocating for its six-point plan which contains multiple waste solutions.
Ms Smith said councils statewide will also be disappointed to see that funding for the Transport Infrastructure Development Scheme (TIDS) remains capped at $76 million a year, leaving councils to foot an increasing road maintenance bill amid rising delivery costs.
Another element missing from the State Budget was the call from councils for a multi-million dollar annual program that could provide dedicated funding for repairs to the state’s ageing water and wastewater network.
Prior to the State Budget, the LGAQ had made a detailed submission on behalf of councils, calling for:
- Increasing the Transport Infrastructure Development Schemes (TIDS) to $100 million per annum to support road maintenance and improve road safety and productivity;
- Reintroducing a Water and Sewerage Infrastructure Program to ensure regional communities have the same access to essential services as those who live in the city;
- Pausing reductions in Waste Levy annual payments, and investing in a 10-year Blueprint for Resource Recovery to drive the future of resource recovery in Queensland to reduce waste and boost recycling;
- Providing ongoing funding for critical programs such as the SEQ Community Stimulus Program and the Indigenous Councils Critical Infrastructure Program.
- Introducing a program to support First Home Owners who purchase existing homes in need of renovation in a bid to unlock vacant homes across regional, rural and remote Queensland.
“Councils receive only three per cent of the nation’s overall tax revenue, making them heavily reliant on Federal and State governments for funding to support every day services,” she said.
“One of the biggest challenges for councils is the looming “infrastructure cliff” which sees them facing a $5 billion funding shortfall for badly needed water infrastructure upgrades without much-needed new investment.
“The LGAQ’s Last Drop report shows Queenslanders are already experiencing the consequences, with supply interruptions being felt in some households and businesses.
“The report offers solutions, as without urgent support, the gap between infrastructure needs and available funding in all corners of the state will continue to widen.
“Councils have also been left reeling by the Commonwealth’s recent announcement it intends to strip them of vital disaster recovery funding.
“These pressures highlight the fact that the other levels of government need to do far more to support cou
For more information, please contact:
Martin Philip, Media Advisor
Phone: 07 3155 4003
Local Government Association of Queensland