Queensland Targets Local Council Depreciation Issues
- Newly formed Depreciation Taskforce to find solutions to crippling financial challenges for councils.
- 35-year local government and government finance expert Neil Castles will lead the taskforce.
- Reporting to the Minister, the taskforce will deliver its report by 31 December 2025.
The Crisafulli Government has formed a Depreciation Taskforce to support local councils to better tackle the growing depreciation challenges to ultimately provide cost of living relief to ratepayers.
The taskforce will focus on improving the sector’s understanding of depreciation, as well as identifying risks and opportunities to better manage assets and reduce financial impacts on ratepayers.
It will look at how depreciation of council assets, such as roads, water and sewerage networks, parks, and buildings, are treated and can be better managed to ensure councils remain financially viable.
The Depreciation Taskforce terms of reference include identifying opportunities to enhance depreciation outcomes across the areas of financial management and reporting; service planning and asset management; grants and funding; and capability/capacity building.
The taskforce will focus on the challenges for local governments in managing depreciation and present opportunities to reduce the impact of depreciation on a council’s sustainability.
The Taskforce will be led by local government finance consultant and sector veteran Neil Castles.
Mr Castles has spent more than 20 years at Queensland Treasury Corporation, including leading its Local Government team.
He spent a further five years as a senior executive within the Queensland Government.
The taskforce will deliver its final report to the Minister in December.
Minister for Local Government, Water and Volunteers Ann Leahy said the Crisafulli Government was committed to a genuine partnership with councils to deliver empowered, strong and local governments.
“We are seeing councils struggle with soaring costs and the effects of depreciation to their budgets, and it’s clear that the issue must be addressed,” Minister Leahy said.
“Calculating depreciation over the forward years is challenging and we are seeing some councils facing significant losses due to the devaluation.
“For a decade Labor treated local councils as second-class citizens and as a result they have faced major challenges in keeping up with ageing infrastructure.
“In stark contrast, the Crisafulli Government is empowering Councils to deliver for their communities and the taskforce’s end game is to, where possible, find savings and pass them on to ratepayers.
https://statements.qld.gov.au/statements/103280