Rates & utilities
Council rates in Australia, explained
Council rates are one of the most regular, predictable costs of owning a home - but exactly how they are set and billed can be confusing, especially for first-home buyers.
What are council rates?
Council rates are a property tax charged by your local council to fund local services and infrastructure. They are usually billed quarterly and are tied to the property, not the owner.
How are council rates calculated?
Most councils use the land’s unimproved value (or a similar valuation set by the state valuer-general) and apply a rate in the dollar set by the council. Some also include fixed charges and separate waste or environmental levies.
Because they are tied to land value, rates can change from year to year as valuations and council budgets change.
How often do you pay council rates?
Most commonly quarterly, with four instalments across the year. Some councils offer different payment arrangements. They are usually billed in advance.
Apartments vs houses
Apartment owners also pay council rates - they are not a house-only cost. In a strata building, each lot is rated individually rather than the building being rated as one.
Frequently asked questions
Do apartment owners pay council rates?
Yes. Each apartment is rated individually by the local council, just like a house. Council rates are separate from strata fees.
Can council rates go up each year?
Yes. Rates depend on land valuations and the council’s annual budget, so they change from year to year.
Last reviewed: 19 August 2026
