Costs of living have been on the forefront of everyone's mind after the costs of gas, electricity, petrol, groceries and now interest rates are about to increase.

READ MORE: Court throws out unfair dismissal claim against Senator Jacqui Lambie from former staffer Rob Messenger

Councillors will consider the 2022-23 annual plan and budget on Thursday and in previous meetings, they have noted the challenges of cost of living increases people face.

Launceston's annual plan and budget for 2022-23 includes a 3.75 per cent rate rise after the council approved rate freeze in 2020-21 due to the COVID-19 pandemic. Some areas, such as Burnie City Council are looking at up to a 10 per cent rate increase.

READ MORE: Police callouts for family violence incidents increase in Tasmania

In the Launceston report, it was stated "despite the significant upward trend in the council's costs, the council has opted not to pass on all of these increases to ratepayers in 2022/2023 and through the revision of its Long Term Financial Plan will address the rising cost issue with more gradual rate increases along with level of service reviews over the next few years to ensure the council remains financially sustainable into the future".

Councillors will also address the municipality's rates and charges policy; and the City of Launceston Rating Framework.

Tasmania Council of Social Service chief officer Ms Adrienne Picone said the ability of councils to recover lost income must be balanced against the current cost of living pressures faced by Tasmanian households.

"Unreasonable rate hikes at a time where many Tasmanians are doing their level best just to keep their homes warm over winter and put food on the table will only place more undue pressure on already stretched household budgets," Ms Picone said.

READ MORE: Firefighters defiant, pay clash smoulders on

"These cost of living pressures are also compounded by the recent second - and significantly larger - rise to interest rates in as many months, which will increase the cost of housing for those repaying a mortgage and result in higher rents if passed on by property investors.

Ms Picone said as Tasmania faces a housing crisis, the responses needs to be multidimensional.

"We need to support Tasmanians to remain in their homes with personal debt and mortgage stress rising rapidly over the past 12-months," she said.

READ MORE: City of Launceston wait for car park decision before move ahead with Birchalls

"Regardless of which suburb you live in, the data shows affording the essentials is getting harder, with the cost of food, housing, energy, health, transport, education, household equipment and recreational activities, all rising by more than general wage increases."

Why not have your say? Write a letter to the editor here:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: