What the council is working on
Recent deliveries, what's underway now, and what's planned next — drawn from the council's own plans, budgets and project pages. We report what the council has publicly said it's doing; every item links to its source.
The council's stated direction
Colac Otway's direction is set by the Community Vision 2050 and the Council Plan 2025–2029, adopted on 14 October 2025, which includes the council's Municipal Health and Wellbeing Plan. The plan's vision: 'Colac Otway is a thriving regional hub where residents prosper, businesses find opportunity and visitors stay longer.' It is carried out through a yearly Annual Action Plan and the annual budget.
The Council Plan has three themes — Place, People and Prosperity — and five objectives: a shire that is a great place to live, work and belong; a vibrant, healthy and supported community; a council that governs progressively and sustainably; a growing and diverse economy; and a thriving tourism industry. The council reports progress on the Annual Action Plan each quarter and in its annual report. A 10-year Financial Plan, a 10-year Asset Plan and a Revenue and Rating Plan sit alongside it; the Revenue and Rating Plan is under review in 2026. The plan was developed with focus groups, pop-up and drop-in sessions, a community survey and a community panel.
The 2026–27 budget raises average rates by the 2.75% cap and waste charges by an average of 9.1%. It allocates $13.06 million to new capital works ($28.51 million with carry-overs from 2025–26), including $11.74 million for asset renewal and a new program to seal some of the shire's more than 1,000 km of unsealed roads. It budgets a $5.73 million deficit, which the council attributes mainly to Financial Assistance Grants being paid early, in 2025–26.
Underway now
Pascoe Street upgrade, Apollo Bay
Stages 1–3 complete (Sep 2026); stage 4 expected to finish in early October 2026, weather permittingA rebuild of Apollo Bay's main shopping street to improve road conditions, reduce flooding and make it safer for pedestrians. The new Moore Street roundabout, a mid-block pedestrian crossing, drainage upgrades and the road in front of the shops are finished. Stage 4 rebuilds the section from the off-street car park entrance to the Nelson Street roundabout.
Source: Colac Otway Shire — Major milestone reached in Pascoe Street upgrade
Coastal road reconstruction program
Since 2024; more Apollo Bay projects due before Christmas 2026The council says it has invested $7 million since 2024 in rebuilding roads and drainage in its coastal townships. Sarsfield Street in Separation Creek was finished in September 2026; works have started on The Boulevard and Koonya Avenue in Wye River.
Source: Colac Otway Shire — Sarsfield Street reconstruction complete
Planned / committed
Unsealed road sealing program
New in the 2026–27 budgetThe 2026–27 budget introduces a program to seal some of the shire's more than 1,000 km of unsealed roads, with $474,000 in the capital works program ($186,000 from grants). The council's new Road Upgrade Policy sets how requests to upgrade a road are assessed and prioritised, rather than choosing roads itself.
Source: Colac Otway Shire — Adopted Budget 2026–27 (section 4.6 capital works)
Revenue and Rating Plan review
Consultation until 7 Oct 2026; for the 2027–28 budgetA review of how rates and charges are shared across property types. The consultation paper sets out options including removing the municipal charge, lowering the farm rate and adding a public waste charge (see Rates & fees). The council will consider submissions before preparing an updated plan.
Bluewater Leisure Centre electrification
$500,000 loan planned in 2026–27; completion expected in 2027A project to electrify the Bluewater Leisure Centre in Colac, funded partly by a $500,000 loan approved in 2025–26 and now planned to be drawn in 2026–27, repaid over 10 years.
Source: Colac Otway Shire — Adopted Budget 2026–27 (sections 4.2.3 and 4.4.3)
Recently delivered
Road Upgrade Policy and Road Safety Strategy
Adopted Sep 2026The Road Upgrade Policy prioritises upgrade requests against set criteria, including traffic volumes, properties served, crash history and cost over the road's life. The Road Safety Strategy has an action plan of 19 actions across five themes, and the council will next prepare a Road Safety Network Plan. The strategy was developed with $50,000 from the Transport Accident Commission. The council manages about 1,061 km of unsealed and 566 km of sealed roads.
Source: Colac Otway Shire — Delivering safer roads across the shire