Couran Cove Residents Face Ongoing Crisis as $22 Million Debt Upholds Utility Disconnections

Residents of Couran Cove, a resort on Queensland’s South Stradbroke Island, are facing continued hardship after the Queensland Supreme Court upheld a $22 million debt owed to essential service providers. The ruling means electricity, water, gas, and sewerage connections will remain cut off to the island resort, leaving residents to grapple with unsustainable living conditions and financial strain.

Years-Long Legal Battle Reaches a Critical Point

The legal dispute, initiated in 2020 by utility providers, stems from allegedly unpaid body corporate levies. Despite residents claiming they had paid their levies, the court found the Couran Cove Community Body Corporate (CBC) owed the $22 million to various service providers. On March 6, 2026, the Supreme Court upheld earlier judgments ordering CBC to settle the dues, and also ruled that four of its six subsidiaries – Marine Apartments, Lagoon Lodges, Broadwater Villas, and Eco Lodges – were liable for payment to CBC.

Residents Describe Dire Circumstances

Rhonda Dalgleish, a 64-year-old retiree and long-time resident, expressed feelings of betrayal and helplessness. “We were all horribly shocked,” she said. “Everybody’s just done. We really don’t know where to turn anymore. No-one is listening and no-one is helping.” Since 2023, residents have been without essential utilities, forcing many to abandon their properties. Those who remain rely on costly makeshift solutions, such as water tanks, power generators, and barge-transported sewerage removal.

Dalgleish estimates her fortnightly expenses for these alternative arrangements exceed $8,000, an amount she can barely afford, leading her to consider returning to operate and depleting her superannuation savings. She highlighted the broader implications of the crisis, questioning where residents will go amidst the current housing shortage.

Court Findings and CBC’s Defense

Justice Paul Freeburn acknowledged that some residents had overpaid their body corporate contributions, but deemed this a “side issue.” The court dismissed CBC’s application to overturn the summary judgments, citing significant delays in filing and the potential disruption to the legal rights of other parties. CBC argued it was unable to defend itself due to alleged sabotage by stakeholders Simon Napoli and Lachlan McIntosh, and claimed past lawsuits were based on an invalid 2019 service agreement due to voting irregularities.

The court also allowed CBC’s application for a summary judgment against the four subsidiaries, confirming their debt was “valid.” A further court hearing will determine final costs.

Government Response and Community Impact

The City of Gold Coast has provided limited support, including bottled water delivery and bin collection services. Local Councillor Shelley Curtis described the court decision as a “devastating outcome” for residents who have endured “very difficult living conditions.” Queensland Premier David Crisafulli, who previously campaigned on the issue while in opposition, has asked government departments to investigate and find solutions, with work reportedly ongoing. ABC News

Unique Challenges of Couran Cove

Couran Cove’s unique situation – being built on private land without municipal utility support – places the responsibility for essential services on the body corporate and resident levies. The resort consists of 360 properties managed through six subsidiary body corporates.