That's the view of council executives following a formal report which claims Lake Macquarie residents have high income levels when compared with other council areas of similar standing.

The council report, written by corporate services director Wayne Jack, said there was evidence residents and businesses had the "capacity to pay" the rate increases.

"More people in Lake Macquarie own or are buying their homes (72 per cent), compared with the NSW or Australian average (63.4 per cent and 64.8 per cent respectively)," the report said.

"The research shows economic indicators support business ratepayers' capacity to pay," Mr Jack said.