Households and businesses in Bundaberg will no longer receive a 9 per cent discount if they pay their rates before the due date.
The change was one of a series of measures announced in the regional council's 2020-21 budget, which revealed a forecast deficit of $5.26 million, principally due to the coronavirus pandemic.
Cr Steve Cooper, who is responsible for the finance portfolio, said actions to ease the burden of COVID-19 measures on ratepayers came at a cost, including dropping the early payment discount in favour of a broad cut to total rates.
"There'll be no interest charges on overdue payments until January 1, 2021; in doing that, we had to take out the discount that we've previously given," Cr Cooper said.
"That has come off the top of everybody's rates. That's around $112 per ratepayer to make it equitable.
"We thought it unfair that the people who could afford to pay get the benefit, when it's the people who can't afford it that need the relief."
Rates will remain at current levels or drop in most circumstances next year, but there will be a 2 per cent rise in waste collection charges and a 2.5 per cent increase in sewerage connection costs.
Cr Cooper said total rate revenue was forecast to rise 3.08 per cent in the 2020-21 financial year, primarily as a result of higher land valuations in the agricultural sector.
"The people getting the rates increase because of the valuation have had a successful time ... not all, but that's the value of the land," he said.
'Reasonable budget in difficult times'
Mayor Jack Dempsey said a large stimulus package, including permanent reductions in infrastructure charges to support the construction sector, was part of council's "reasonable budget in difficult times".
"While we have over 44,500 ratepayers, approximately 43,000 will see a stabilisation or reduction in their general rates base while we'll still be able to stimulate the economy," Cr Dempsey said.
"We will have a deficit of over $5 million, but going forward that means we won't have to borrow any money or loans to keep people in jobs and activities going.
"Council has received $2.8 million less revenue than expected [this financial year] due to fewer flights into Bundaberg Airport and the closure of holiday parks and venues, such as the Moncrieff Entertainment Centre and the Multiplex."
The budget includes an $83 million capital works program, including $12.6 million to complete the Gregory River water treatment plant, $3.32 million to upgrade the recreation precinct, and $1.2 million to upgrade the Hamanns Road crossing at Apple Tree Creek.
