November 2, 2026
Local councils challenged by the burden of asset depreciation could face some relief in future, which would be good news for ratepayers as well as possibly improving councils’ bottom line.
In August 2025, the State Government formed a Depreciation Taskforce to investigate ways for councils to better manage assets in a bid to reduce the financial impact on ratepayers as well as improve councils’ sustainability.
At the time, Local Government Minister Ann Leahy said councils were struggling with the effects of depreciation on their budgets.
“Calculating depreciation over the forward years is challenging and we are seeing some councils facing significant losses due to the devaluation,” the Minister said.
The recommendations from the Taskforce were delivered to the government in December last year.
At the recent Local Government Association of Queensland (LGAQ) conference in Cairns, Premier David Crisafulli promised that three early priority reforms resulting from the recommendations would be implemented by May 1 next year.
These included changing how government-gifted assets were treated on Council balance sheets, helping ensure communities were not left carrying the cost of assets they inherited but could never afford to replace themselves.
However, the conference delegates were warned there was no “one-size-fits-all” approach to depreciation, with councils facing different financial and asset management challenges.
Other changes, which required further planning and co-ordination, would be addressed at a later date.
LGAQ president Matt Burnett said the announcement of the first changes followed years of advocacy from Queensland councils.
“Our members have been crying out for changes for years, passing multiple Annual Conference Resolutions so we very much welcome the Premier’s announcement and thank Local Government Minister Ann Leahy for her work,” Mayor Burnett said.
“We look forward to working with Minister Leahy and her department as they progress the changes.”
Minister Leahy said depreciation was a complex accounting issue, but its affect on councils and communities was real.
“Improving how depreciation is understood, reported and managed will support better long-term planning, more informed investment decisions and more sustainable local government services,” she said.
Asset depreciation made up a significant proportion of the South Burnett Regional Council’s 2026-27 Budget.
Its depreciation provision of $30.2 million was more than 31 per cent of Council’s total expenses.
