In Australia, council rates for a property are fees levied by local government councils to fund the provision of essential services such as roads, footpaths, parks and gardens, waste management, and community facilities.
The amount of council rates a property owner has to pay is typically based on the capital improved value of the property, and the services provided by the council in the area. Council rates are usually invoiced annually and payment is due by a set date.
Are council rates included in strata fees for apartments and townhouses?
In Australia, council rates for a strata property (a property that is part of a strata scheme, such as a unit or townhouse complex) are generally not included in the strata fees. Strata fees are levied by the strata corporation and are used to cover the costs of maintaining common areas and facilities within the strata scheme, such as swimming pools, gardens, elevators, and security systems.
Paying council rates remains the responsibility of each individual strata property owner, and the council rates are typically invoiced directly to the owner. However, some strata schemes may choose to include an amount for council rates in their strata fees as a separate line item to simplify the payment process for owners.
How are council rates calculated?
Council rates in Australia are calculated based on the value of a property. The local government council determines how much each property should contribute towards the cost of providing local services and amenities. This amount is calculated by multiplying the value of the property by a rate set by the council, expressed as a dollar amount per $1,000 of the property’s value.
Council rates are set at the local council level and generally not possible to be negotiated.
Does council rates have GST?
Council rates in Australia are generally not subject to Goods and Services Tax (GST). Council rates are considered a government tax and are exempt from GST under the GST Act. However, some other charges associated with property ownership, such as water and sewage charges or strata fees, may be subject to GST. Always check with your accountant and legal representative to determine whether GST is applicable in your case.
When are council rates issued?
You typically pay council rates on a quarterly instalment basis in Australia, similar to strata rates.
Council rates are typically issued annually by the local government council. The exact timing of council rate issuance can vary between councils, but it is common for council rates to be invoiced in the first half of the financial year and for payment to be due within a set timeframe, often around the end of the financial year. Property owners should check with their local council for information on the specific timing and payment arrangements for council rates in their area.
