Sunshine Coast Council hikes rates, slashes 130 jobs as costs spiral

There is anger among Sunshine Coast residents after two years of large rates rises. (ABC News)

Residents in Queensland's Sunshine Coast have copped a second consecutive major rate hike.

The council lifted rates by 22 per cent in the past two years, but still faces a $7 million deficit.

The council will cut 130 jobs to save $15 million, while one councillor suggests implementing a tourist tax.

One of Queensland's biggest councils has slapped residents with a huge rates hike for the second consecutive year, as the council slashes 130 jobs amid ongoing cost blowouts and budget deficits.

Ratepayers on the Sunshine Coast will be slugged hundreds of dollars extra from July, after councillors unanimously approved a 10 per cent rate hike during a budget meeting this week.

The increase follows an 11 per cent hike last year, and still leaves the council staring at a $7 million deficit.

While Victoria and NSW have a legislated cap on rate increases, the Sunshine Coast is among several Queensland councils struggling to contain spiralling expenses.

Sunshine Coast Mayor Rosanna Natoli warned there was still more pain to come.

"Nobody likes this budget, nobody wants to deliver these sorts of rates rises," she said.

Rosanna Natoli says the council's service delivery costs have jumped 30 per cent in four years. (ABC News: Amy Sheehan)

"We've made sure we look at every single dollar and line item in the budget and ask the question, 'Is this what our community needs?'"

Cr Natoli said the Sunshine Coast Council had delivered budget deficits for the past five years.

"That is not sustainable. We need to be able to get to where we can deliver a surplus," she said.

"Nobody wants a council that is wasting money. We really need to be very careful about this."

Last year, the council revealed a $20 million black hole due to previous accounting errors.

Cr Natoli said the council would be "tightening our belt" with 130 roles to be slashed from the council's 1,900-strong workforce.

About 80 people's jobs will be made redundant, while another 50 vacant positions will not be filled and a hiring freeze will continue.

The move will save $15 million a year, while the council is also seeking to cut another $30 million.

The new Sunshine Coast city hall opened in 2024 in the Maroochydore CBD, costing ratepayers $98 million. (ABC Sunshine Coast: Jennifer Nichols)

Dog registration fees will double from $30 a year to $63, to help lift the council's revenue.

The annual rates bill for most Sunshine Coast home owners will rise $222 to $2,503 from July.

Dozens of angry resident