Gold Coast councillors have been knocked back in their attempt to remove a rates discount for property investors. 

Gold Coast Mayor Tom Tate on Thursday recently announced a rates increase of at least 4 per cent - the city’s highest in a decade.  

Households that pay their rates early or on time are eligible for a 10 per cent discount under council concessions, but councillors sought to remove that discount for the 94,000 investment properties on the Gold Coast.

The measure could have boosted council revenue by about $20 million per year. Supporters of the plan pointed out that 30 per cent of those investment property owners live out of the city. They also noted that the Australian Tax Office already provides incentives to investment property owners to pay their rates on time.

However, the proposal was voted down by a majority of councillors, including Deputy Mayor Donna Gates, who said the higher rates for investment properties would trickle down to renters.

“It's the start of chipping away at the 10 per cent — our community loves that discount and it does encourage prompt payment,” Cr Gates said.

“We need to be looking after the whole of the city at the moment to maintain as much of the status quo as we can.”