Sunshine Coast Council has postponed adoption of its 2025–26 Budget after uncovering a long-running internal reporting error that is expected to leave a $20 million deficit this financial year. The delay follows the discovery of a historical issue in how depreciation was recorded over at least five years, prompting a full-scale financial review.
Mayor Rosanna Natoli said the issue was being treated as a priority. “The new Council is taking this seriously and has prioritised the issue as part of its broader commitment to transparency and financial integrity,” she said.
“Delaying the Budget is not a decision we’ve taken lightly, but it’s the right one. We want to be sure the financial information we’re relying on is accurate and complete – because trust starts with transparency.”
CEO John Baker said while external audits by the Queensland Audit Office were compliant, internal reports had failed to reflect the true long-term cost of asset ownership and renewal.
“This has contributed to an inaccurate reporting of Council’s true financial position in recent years,” Mr Baker said.
“The amount is in the order of $30 million and this means we will end with a deficit of around $20 million this current financial year.”
He said the review was being led by himself and the new Chief Financial Officer, with robust financial controls being introduced. “This is about restoring confidence – not just in the Budget, but in the processes that support good governance and decision-making.”
The revised Special Meeting date to adopt the Budget is now set for July 7, 2025.
(Photo Credit: Sunshine Coast Council Mayor Natoli )