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East Gippsland Shire Council has adopted its 2026/27 Budget, with a focus on supporting community, protecting critical services, and ensuring the organisation remains financially sustainable over the long term.
Adopted at Council’s meeting on 23 June 2026, the Budget demonstrates a careful balance between service delivery, infrastructure investment and responding to cost-of-living pressures facing the community.
Mayor Cr Jodie Ashworth said the Budget had been developed at a time of ongoing cost pressures and economic uncertainty.
“Factors such as inflation, higher fuel and insurance costs, and rising expenses associated with delivering essential services have required careful and considered decision‑making,” Cr Ashworth said.
“These are challenges facing households and businesses every day and Council is also not immune.
“This is a Budget that continues our commitment to putting the community first. It has been developed over many months, with significant contributions from community, officers and Council across the shire.”
As a Council delivering services across 21,000 km² – approximately 10% of Victoria – there is an ongoing challenge of efficiently delivering services across a large and dispersed region.
“Our demographics and geography often require duplication of services to ensure all communities are supported, including multiple service centres, waste transfer stations, libraries and open spaces. This comes at a cost that must be balanced against our commitment to support communities,” Cr Ashworth said.
Rates below State cap and CPI
For the second consecutive year rate increases have been kept below the State Government cap.
Cr Ashworth said that in setting the rate, Council made a deliberate effort to limit cost-of-living pressures and financial impacts on businesses while continuing to deliver the services and infrastructure our communities rely on.
“The average rate increase is set at 2.5%, below the State-imposed cap of 2.75% and well below inflation, which is currently around 4.2–4.9%. We also use a differential rate across residential, commercial/industrial and farming properties to share the rating load. We have kept the rise event across these groups,” Cr Ashworth said.
“This means difficult decisions must be made as costs continue to rise faster than revenue. We encourage any ratepayer experiencing financial hardship to contact us.”
Rates make up about half of Council’s revenue and are necessary to maintain core services.
“Supporting our ageing population is a key priority. In 2026/27, $483,000 will be provided in pensioner rate rebates, in addition to the State Government concession, to assist eligible pensioners with rising living costs,” Cr Ashworth said.
Fuel costs add up
Fuel prices have risen sharply, driven in part by conflict in the Middle East.
Chief Executive Officer Fiona Weigall said the Budget includes approximately $880,000 in additional fuel costs across Council services, including road maintenance, parks and gardens, and waste collection.
“Waste services are particularly sensitive to fuel price increases due to the scale and frequency of collection across a large geographic area,” Ms Weigall said.
“These costs, combined with processing and disposal expenses, continue to place upward pressure on the cost of waste and recycling services. We are actively working to reduce fuel use where possible while maintaining service levels.”
Community programs valued
The Budget highlights the wide range of community programs Council supports and recognises the important role volunteer committees and groups play.
“We will fund 79 committees that manage many of our halls and sporting reserves, along with providing funding streams for community projects, and arts and cultural initiatives that contribute to the fabric of East Gippsland,” Cr Ashworth said.
Striking the right balance
To support long-term sustainability, the Budget includes $1.5m in savings and efficiency measures, in addition to the $2m in ongoing savings achieved in 2025/26.
Ms Weigall said these measures help manage rising costs while protecting frontline services and maintaining alignment with Council Plan priorities.
For 2026/27, $54.4m has been allocated to the Capital Works Program, with $31.8m funded through Council operations and $22.7m from grants and external contributions.
Ms Weigall said that in line with Council’s principle of making the most of existing assets, $36m is allocated to asset renewal.
Securing external funding remains critical as councils are expected to deliver more with fewer resources.
“We’ve worked hard to strike the right balance – keeping rates as low as possible while still investing in roads, community facilities and the services that matter most to our residents,” Cr Ashworth said.
The Budget aligns with Council’s Plan and Community Vision, directing available resources to priority areas identified through community engagement and strategic planning frameworks.
Cr Ashworth said community feedback played an important role in shaping the Budget.
“We have actively listened to our community and ensured their feedback has guided our decision-making. The priorities we’ve heard – maintaining essential services, managing costs and investing in infrastructure – are reflected in this Budget.”
The adopted 2026/27 Budget and supporting fact sheets will be available on Council’s website and at service centres and libraries.