STRUGGLING ratepayers will not be given a reprieve on their water, waste water and waste collection charges, with the 7.5% discount for service charges scrapped by the Southern Downs Regional Council.

Ratepayers will notice a significant difference in their 2015/16 rates notices, with the 7.5% discount only applying to general rates.

The average Warwick urban ratepayer will be $100 worse off each year without the discounts, while the average ratepayer in Killarney stands to lose $105. The average Allora ratepayer will be down $44 a year without the discount.

While the 7.5% general rates discount offers some reprieve, it will not apply if ratepayers don't pay within 30 days or choose to split payments into two instalments.

Mayor Peter Blundell said the council recognised significant expenditure on water and wastewater infrastructure improvements across the region would be needed in the near future, so the difficult decision was taken to remove the discount from the service charges.

"We recognise that there are significant shortcomings in funding for service areas that will require upgrading and remediation in the coming year," he said.

While Cr Blundell said he appreciated the discount removal would be unpalatable to many ratepayers, he said council had to make some tough decisions.

"The council is determined to reduce its level of debt and to provide the appropriate size organisation to deliver the services the community sees as necessary," Cr Blundell said.

"This has meant both considerable curtailing of expenditure many areas of council operations, in addition to the change in application of the discount.

"We know we need to have an incentive for the payment of rates on time so the council agreed that the 7.5% discount on the general rate was an acceptable compromise."

Discounts on rates dropped from 10% to 7.5% in last year's budget.

Rate notices are expected to be dispatched to residents in early August.