Council Rates
Fees charged by local council for services such as rubbish collection, road maintenance, and community facilities. Paid quarterly or annually by the property owner.
Plain-English definition. Council rates are the annual property tax charged by local government, used to fund services like waste collection, road maintenance, parks, libraries, and stormwater.
How it works in Australia. Each council strikes its own rate using its preferred valuation base — typically Unimproved Capital Value (UCV) or Site Value in NSW/QLD, or Capital Improved Value (CIV) in Victoria — multiplied by a "rate in the dollar" set in the council's annual budget. Valuations are determined by the state Valuer-General and updated every 1–4 years. Most councils also charge fixed waste service charges and emergency services levies. Pensioners and concession card holders are eligible for rebates of $250–$500. Rates are paid in four quarterly instalments or a single annual payment.
Concrete example. A house in Marrickville (Inner West Council, NSW) with a land value of $1.2m might attract general rates of $1,920, plus a $480 domestic waste charge, plus a $58 emergency services levy = $2,458 per year. A unit in the same area on a $300k strata-apportioned land value might pay $720 + $480 + $58 = $1,258 — much lower because the land value is divided among all units.
Common confusion. Buyers confuse council rates with strata fees and land tax — they're three separate levies. Council rates are paid on every property regardless of whether you live in it; strata fees only apply to strata-titled lots; land tax is a state tax above a threshold and excludes the main residence in most states.