Council rates in Australia: how they work, by state

How a rate bill is built

Across states the pattern is similar: a valuation of your land (and sometimes the building), multiplied by a rate set by the council, sometimes with a fixed charge or a minimum amount, plus charges for services such as waste. Queensland’s government states that a land valuation “is just one of many factors” councils consider when they frame their budgets, and that “rates can change even when your land value hasn’t”. A higher valuation does not automatically raise your bill; what matters is the council’s total revenue and your share of the municipality’s values.

New South Wales

• Each parcel is in one of four categories: residential, business, farmland or mining.
• A council can calculate ordinary rates in three ways: entirely on land value, on land value plus a fixed amount per property, or on land value subject to a minimum amount.
• The Valuer General sets land values, usually about every four years.
• The rate peg, set by IPART, is the maximum percentage by which a council’s total ordinary rates revenue can grow. It is based on the Local Government Cost Index minus a productivity factor, has applied since 1977, and covers ordinary rates only (not waste, water, sewerage or stormwater charges). Councils may apply all, part or none of it, or seek a special rate variation above it.
• Pensioner concession: $250 off ordinary rates and domestic waste charges, plus $87.50 off water and $87.50 off sewerage charges, for holders of a Pensioner Concession Card or a qualifying DVA Gold Card. The amounts are not indexed.
• Objecting: 60 days to object to a land valuation (you keep paying rates meanwhile), then the Land and Environment Court. For a rating category, ask the council for a review, then appeal to the Court within 30 days of the review decision.

Victoria

An annual rate cap limits how much councils can increase general rates and municipal charges. For 2026-27 average council rate rises are capped at 2.75%. The Minister for Local Government sets the cap before 31 December each year; it can apply to all councils, a group or one. A council can apply to the Essential Services Commission for a higher cap of up to four years; one council has an approved higher cap of 5% for 2026-27, and councils have until 31 March 2027 to apply for 2027-28. The cap limits revenue growth, not the change in any individual bill. The State Revenue Office states that objections to a valuation on a council rates notice go to the council, not to the State Revenue Office; check the deadline printed on your notice.

Queensland

Local councils set rates as part of their annual budgets, using the state’s land valuation. Valuations also feed state land tax and state land rental, which are separate from council rates. An objection to a valuation needs “acceptable grounds supported by evidence” such as comparable sales; it will not be accepted on broad statements, average prices, asking prices, personal circumstances or liability for rates and taxes. Check the deadline on your valuation notice. Council pensioner concessions vary by council.

Western Australia

The Valuer-General determines gross rental value (GRV), “the total annual rent a property might reasonably be expected to earn each year”, for all rateable properties; Landgate supplies the figures. Metropolitan values are reassessed every 3 years, regional ones every 3 to 6 years. Each council sets its own rate in the dollar; it multiplies that rate by the GRV and adds levies such as rubbish collection. For undeveloped land a statutory GRV applies: 3% of the unimproved value for residential and 5% for non-residential. You can lodge a formal objection online with Landgate.

South Australia

Council rates in South Australia are set by councils using values supplied by the state’s Valuer-General. The state valuation pages were not available to read when this guide was prepared, so check your rates notice and your council for the valuation basis, the rate in the dollar and the objection deadline.

Tasmania

Under section 90 of the Local Government Act 1993, a council may make one general rate per financial year, not earlier than 1 June and not later than 31 August, on all rateable land. It must be based on land value, capital value or assessed annual value. A council may set a minimum amount, but only if the rate does not include a fixed charge. A fixed charge, if used, must apply equally to each rateable assessment, and its total revenue must not exceed 50% of the council’s general rates for the year (s 91). The sections read set no cap on the rate.

Australian Capital Territory

The ACT has no separate council charge: rates are imposed under the Rates Act 2004 and payable to the Commissioner by the owner of the parcel. For a parcel of rateable land the rates are a fixed charge plus the average unimproved value multiplied by a percentage rate, both determined under the Taxation Administration Act, and different amounts may be set for residential, commercial or rural land. The Commissioner redetermines unimproved values each year as at 1 January. The payment date cannot be earlier than 4 weeks after the date of the assessment notice, and paying on or before it earns a discount. An objection to a valuation must be made within 60 days after the notice of the unimproved value.

Northern Territory

Councils declare their own rates under the Local Government Act 2019. As one example, the City of Darwin’s 2024/25 declaration adopted the unimproved capital value from the valuation roll as the basis, and applied differential percentage rates by zone with a minimum amount for each. Rates differ by council, so check your own council’s declaration.

Which professional to consult

A property valuer can explain a valuation and whether an objection has a basis; a conveyancer will advise how outstanding rates are adjusted at settlement (see settlement and electronic conveyancing). This guide states the published rules and is not tax or legal advice.