While we’re in dire straits with island infrastructure backlog (roads, footpaths, drainage, sewerage and parking) there is no money for nothing and the cheques aren’t free.
Unless you’re born into wealth, there is no money for nothing. Same with funding infrastructure on SMBI, it either comes from you via the taxes and fees you pay to the federal and state government, or from rates and fees you pay to council. There is no huge commercial sector or mining in Redlands and 87% of council revenue is from rates and levies[1].
You can argue about a redistribution of wealth, whether the taxation system is fair, whether SMBI paid rates for years, etc; but at the end of the day Council has only two sources of funding for infrastructure on SMBI – government grants or money paid in rates and levies.
In new housing developments, the developer has to develop the local infrastructure and pay a capped infrastructure contribution to council to offset the cost of city-wide infrastructure, such as sewerage and parks[2]. Most of the infrastructure we see on the mainland was provided by the developer or through infrastructure fees; residents paid for this when they brought their land or house.
When SMBI was subdivided and released in 1971/72, there was no infrastructure development by the developer, and no infrastructure fees were paid. This was before the transfer of SMBI from the state government to Redlands Shire in 1973. Existing infrastructure on SMBI has primarily been funded by ratepayers from across the city.
Further, council has to pay twice for new infrastructure. Once in the upfront costs and then through an annualised depreciation schedule so the cash is there to replace the asset at the end of its life. So even when something is paid for by a grant, the ratepayer then has to make a regular cash payment towards its maintenance and depreciation.
This is important to understand – money is not free!
So, if we are to fund our infrastructure on SMBI, the big questions to ask are:
- What are our infrastructure priorities?
- Do we as islanders want to pay for this through increased rates – whether to fund borrowings or just the depreciation and maintenance on external grant funded infrastructure?
- Can we afford to pay increased rates or a special levy?
- Is the increased value to SMBI properties as a result of island infrastructure investment enough to make us want to pay?
- Do we realistically think mainland residents (about 95% of voters) would vote to increase their rates to pay for infrastructure on the islands that will increase the value of island properties for islanders?
To date, council has not prepared an investment plan or overall cost of the infrastructure backlog on SMBI. Partly, I think, because of the cost implications whether this is funded through external grants or borrowings is too high.
For example, I wouldn’t expect much change from $1.5billion to address the infrastructure backlog on SMBI. This is almost 10 times[3] the total capital expenditure for the city budgeted in 2025-26.
It is a lot, the equivalent of just over $130,000 per approved residential lot. But it is also highly likely the value of our properties would increase by more than this amount if we had roads, sewer, footpaths, drainage and adequate island and mainland parking. I have deliberately not discussed a bridge, as this will not address the key infrastructure requirements of SMBI and is not something council could undertake.
To fund the infrastructure backlog through borrowings (over 20 years) and cost of depreciation (over 50 years), and not factoring maintenance, this would cost an additional $1,900 in rates if distributed across all ratepayers in Redlands or $11,500 if met through a SMBI levy. This would reduce to $426 (all city) and $2600 (just SMBI) if grant funded and only the depreciation costs had to be met by increased rates.
These numbers are highly speculative and more detailed assessment of the current infrastructure backlog, costing infrastructure development and working with state and federal government to examine funding models and capital works timeframe would derive a more accurate cost and funding model.
Over the next few weeks, I will be exploring the costs associated with the key infrastructure investments required on SMBI. The first deep dive will be into sewering the islands, probably the most expensive capital project.
But I will leave you with this key question – How much would you be prepared to pay as special levy for SMBI infrastructure?
References
LGAQ. (2024, April 22). Ratepayers unfailry footing the bill for developers. Retrieved February 22, 2026, from LGAQ: https://www.lgaq.asn.au/News-and-Media/Media-Releases/Ratepayers-unfairly-footing-the-bill-for-developers
RCC. (2026). January 2026 Monthly Financial Report . Organisational Services . Redland : RCC.
[1] 3. Statement of Financial Income, page 34 Financial Report (RCC, 2026)
[2] There is ongoing advocacy from councils to the state and federal government about the adequacy of these fees to meet the cost of the housing development on city wide assets. (LGAQ, 2024)
[3] 1. Executive Summary- Key Financial Highlights and Overview, page 33, Financial Report (RCC, 2026)