Sunshine Coast Council has rescheduled the adoption of its 2025-26 budget to allow additional time to complete a comprehensive financial review.
It comes after an issue was uncovered in how depreciation has been reported internally to the council, impacting financial statements over at least the past five years.
In a media release, chief executive officer John Baker said that while external audits by the Queensland Audit Office had remained compliant, the internal reports presented to the council did not fully reflect the long-term cost of asset ownership and renewal.
“This has contributed to an inaccurate reporting of council’s true financial position in recent years,” he 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.
“The new chief financial officer and I are leading the review, with a focus on ensuring the 2025-26 budget is built on clear, accurate and reliable financial data.
“We are putting robust financial controls and reporting mechanisms in place to ensure this type of issue could not happen again.
“This is about restoring confidence – not just in the budget but in the processes that support good governance and decision-making.”
Mayor Rosanna Natoli said the council had made a clear commitment to transparency and honest conversations with the community.
“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.
“This work is essential to reinforcing trust.
“We appreciate the community’s patience as we take the time needed to get this right.”
The revised special meeting date is now July 7.
