The push to increase rate revenue stems from the council's Long Term Financial Plan which was created after getting performance directives from the state government last year.

The plan notes that the council is trying to raise their rate revenue by 15 per cent for two financial years including 2021-22, decreasing to 12.5 per cent in 2023-24, 7.5 per cent in 2024-25, 3.5 per cent in years 2026-28 and to 3.25 per cent from 2028-31.

Glamorgan Spring Bay mayor Robert Young said it was important to note that rate revenue consists of a variety of sources including residential rates, commercial, property rates and other supplementary rates and is not solely reliant on residential rates.

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He said the council had to lift its rate revenue to be on par with neighbouring councils.

"We haven't had adequate rate income at all ... the rates in this municipality are below for equivalent premises for Break O'Day and Swansea, and they're the two adjacent councils," he said.

"It's a 15 per cent revenue increase that council is considering overall."

The council is proposing to alter how property rates are charged and transition towards the average annual value system, which will see changes for some property owners as part of the revenue growth plan.

"[Under the AAV] you will pay rates based on the rental value of your property," he said.

"There won't be a massive rise but there will be for some a substantial rise but for many, there will be a substantial benefit due to the reduction."

Those comments are supported by figures in the council report, which would see 1404 residential homes receive decreases, 1088 properties receive a $0-$200 increase, 888 properties receive a $200-$500 increase and 547 properties receive a $500-$1000 increase.

The AAV is used by a majority of councils in Tasmania compared to the annual assessed rate which the council currently uses to fix rates.

At a press conference in Hobart, Premier Peter Gutwein refused to be drawn on the council's financial situation.

"We've reached out to the council this morning, we've asked for some further information," he said.

"What's been reported is concerning but I think what's important is that we understand the position of that council fully."

Cr Young dismissed talks of amalgamation for council going forward.

"We have no alternative but to keep on keeping on," he said.

The council will meet on June 22 for further discussions at their council meeting.

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