Average council rates in Australia: what homeowners pay b...

Key findings

$25.1^bn

Total national rate revenue in 2024–25, up from $16.9 billion a decade earlier

$4,252

Highest average annual rate, paid by homeowners in Canberra (ACT)

$1,775

Lowest average annual rate, paid by homeowners in Adelaide (SA)

49^%

Growth in total national rate revenue over the past 10 years, 2015–16 to 2024–25

Australian homeowners collectively pay $25.1 billion in council rates each year. The average annual bill ranges from $1,775 in Adelaide to $4,252 in Canberra, with differences shaped by council structure, service responsibilities and how costs are shared across properties. The gap between Adelaide and Canberra is not explained by property prices alone. It reflects how each council is structured, what services it funds and how many properties share the cost.

Section 01What it is

What are council rates and how do they work in Australia?

Australian councils collected $25.1 billion in rates in 2024–25, up 49% over the previous decade. Most property owners contribute to this system each year. The amount they pay depends on their property's official value, their council's rate settings and any fixed charges added to the notice.

Unlike a power or water bill, council rates are not based on how much a person uses local services. A higher-value property usually pays more, but rate revenue is pooled and spent on shared local infrastructure and services. Most properties must pay rates. Common exemptions include schools, churches and government-owned land. Each year, a council sets a rate multiplier, applies it to each property's official value, then adds fixed charges where they apply.

What council rates fund

Roads & footpaths

Construction, sealing, resurfacing, and ongoing maintenance of local roads, kerbing, gutters, and pedestrian paths.

Parks & open space

Maintenance of parks, ovals, playgrounds, street trees, and public green space across the local area.

Waste & recycling

Kerbside rubbish, recycling, and green waste collection, tip access, and household hazardous waste programs.

Public libraries

Staffing, collections, digital resources, and building operations across branch and regional library networks.

Emergency management

Local flood and fire mitigation, evacuation infrastructure, emergency planning, and state emergency services levy contributions.

Community facilities

Aquatic centres, community halls, aged care services, arts facilities, childcare support, and local planning administration.

How a council rates notice is structured

Every rates notice has two main parts. The first is a variable charge based on the property's official value, which is usually set by a government valuer. The second is a set of fixed charges that can apply regardless of property value. These fixed charges, mainly waste collection and emergency services levies, help explain why a unit owner can sometimes pay a similar total bill to a nearby house owner despite owning a lower-value property.

Rates notice anatomy: how the bill is built2025–26 financial year

Variable component: scales with the property value

General rate

Government-assessed property value × the council's rate multiplier

Varies per property

Fixed components: same for every property

Waste collection charge

Set by the council; covers kerbside pickup and recycling services

Flat fee

State emergency services levy

Collected by the council on behalf of the state government

Flat fee

Minimum rate

Applied when the standard rate charge falls below the council's minimum (e.g. $1,206 in West Torrens, SA for 2025–26)

If applicable

Total annual rates notice

Payable annually or in quarterly instalments

General rate + fixed charges

Issued July–August each year

Council rates payment options and due dates

Councils usually send rates notices at the start of each financial year, often between July and August. Notices may arrive by post or email. Most councils allow ratepayers to pay the full annual amount upfront or split the bill across quarterly instalments. Late payment can attract penalty interest.

Option A: annual payment

Pay the full year in a single transaction

July – August

Rates notice issued and sent to the property owner

August – September

Full annual amount due. Exact date is printed on the rates notice.

Late payment: penalty interest applies from the due date. Victoria: 10% a year. Brisbane: 12.12% a year, charged daily.

Option B: quarterly instalments

Four equal payments spread across the financial year

September

First instalment due

December

Second instalment due

March

Third instalment due

June

Final instalment due (financial year closes)

Payment dates are indicative. Exact due dates are printed on the rates notice and vary by council. Councils must accept quarterly instalments, and some also offer monthly direct debit. Many councils publish hardship policies or payment arrangement options for ratepayers experiencing payment difficulty.

Section 02By state

Average council rates by state and capital city

What is the average council rate in Australia?

Across Australia's capital cities, the average annual council rate ranges from $1,775 in Adelaide to $4,252 in Canberra. National council rate revenue reached $25.1 billion in 2024–25, up from $16.9 billion in 2015–16. The increase reflects a mix of rising property values, population growth, new rateable properties and changes in council revenue settings.

Brisbane's average of $4,083 is more than double Melbourne's $1,910, even though Brisbane property prices are well below Sydney's and broadly similar to Perth's. The difference is not explained by property prices alone. It also reflects how the council is structured, what services it funds and how many properties share the cost.

Brisbane City Council is a single large council covering the same kind of area that other Australian cities divide across dozens of smaller councils. It funds a wider range of services from one pool and charges an extra fee for infrastructure as part of the general rate. Because all those costs fall on one council instead of being split across many, the average bill is higher. The ACT works the same way, with a single body covering the whole territory.

Average annual council rate by capital city

Approximate average annual rate, December 2025

Canberra

$4,252

Brisbane

$4,083

Sydney

$3,188

Perth

$2,027

Melbourne

$1,910

Darwin

$1,900

Hobart

$1,800

Adelaide

$1,775

Highest

Mid range

Lowest

Canberra ($4,252) and Brisbane ($4,083) record the highest average annual council rates, more than double Adelaide's $1,775. Brisbane and Canberra figures reflect the consolidated council structure in each jurisdiction.

Source: Individual council rate schedules and state local government association data, 2025–26.

$6.6^bn

Victoria generates the most rate revenue of any state

Despite having the lowest average capital city rate at $1,910, Victoria collected $6.636 billion in rate revenue in 2024–25, ahead of NSW at $6.2 billion. That apparent contradiction comes down to volume: Victoria has more properties paying rates than any other state.

Victoria also limits how much councils can increase their total rate revenue each year. For 2025–26, the cap is 3.0%. That means councils cannot automatically convert rising property values into equivalent increases in total rate revenue.

National municipal rate revenue, 2015–2025

Total collected across all Australian councils, $ billions

National rate revenue grew from $16.9 billion in 2015–16 to $25.1 billion in 2024–25, a 49% increase over a decade. The increase may reflect rising property values, population growth, new rateable properties and changes in council budgets or charges.

Source: Australian Bureau of Statistics, Taxation Revenue, Australia, 2024–25. ABS cat. 5506.0.

Property values increased substantially across Australia over this period, but rate revenue growth does not come from property values alone. Total collections can also rise when the number of rateable properties increases, when councils change budgets or when charges and levies are adjusted. Victoria's rate cap limits annual increases in council rate revenue.

Municipal rate revenue by state, 2024–25

Rates revenue by jurisdiction, $ millions

State or territory	Total rate revenue	10-year change
Victoria	$6,636m	+39.8%
New South Wales	$6,200m	+49.5%
Queensland	$5,455m	+55.2%
Western Australia	$3,152m	+47.1%
South Australia	$2,134m	+48.8%
ACT	$812m	+92.0%
Tasmania	$568m	+51.5%
Northern Territory	$182m	+51.7%
Australia total: $25,138m · +48.8% over 10 years

Victoria and NSW collected the most rate revenue of any state, a combined $12.8 billion in 2024–25. Queensland recorded the highest mainland-state growth over the decade, at 55.2%. The ACT recorded strong growth in general rates revenue, but ACT figures are reported through territory budget papers rather than the ABS local government table because the ACT does not have separate municipal councils.

Source: Australian Bureau of Statistics, Taxation Revenue, Australia, 2024–25, detailed local government rates revenue tables; ACT Treasury, Budget 2025–26 for ACT general rates revenue.

The state totals can seem counterintuitive. Melbourne has the lowest average capital city rate, yet Victoria collects more rate revenue than any other state because it has the most properties paying rates across the most councils. NSW is close behind for the same reason. Queensland and Western Australia have seen strong growth in total collections as population growth brings more properties into the system.

Section 03Houses

Which state has the highest council rates for houses?

The average annual council rate for houses ranges from $1,775 in South Australia to $4,252 in the ACT. As a share of median house value, the ACT has the highest effective rate at 0.41%, followed by Queensland at 0.33%, the highest rate of any mainland state. NSW has the highest median house price in the country at $1,600,301, but its average annual rate works out to 0.20% of median house value.

South Australia has the lowest effective rate for houses at 0.18%. On this measure, a median-priced Queensland house attracts an average annual council rate roughly $900 higher than a median-priced NSW house, despite the NSW median house price being about $377,000 higher.

Council rate as a % of median house price, by state

Average annual rate expressed as a percentage of median house value, December 2025

NSW

0.20%

VIC

0.20%

QLD

0.33%

0.18%

0.19%

TAS

0.23%

0.26%

ACT

0.41%

Queensland has the highest effective rate for houses of any mainland state at 0.33%. The ACT leads overall at 0.41%. South Australia has the lowest at 0.18%, despite house prices sitting above the national median.

Source: Australian Bureau of Statistics, Total Value of Dwellings, December Quarter 2025, Table 2; Individual council rate schedules and state local government association data, 2025–26.

Average annual council rates for houses by state, 2025

State median house price vs average annual council rate, December 2025

State	Median house price	Avg annual rate	Rate as % of value
NSW	$1,600,301	$3,188	0.20%
VIC	$972,734	$1,910	0.20%
QLD	$1,222,906	$4,083	0.33%
SA	$1,006,099	$1,775	0.18%
WA	$1,087,507	$2,027	0.19%
TAS	$796,682	$1,800	0.23%
NT	$732,769	$1,900	0.26%
ACT	$1,049,789	$4,252	0.41%

The ACT has the highest rate as a percentage of property value at 0.41%, followed by Queensland at 0.33%. Both have consolidated council structures. South Australia has the lowest at 0.18%. Rate as a percentage is calculated by dividing the average annual council rate by the median house price. These figures are indicative because councils use official property assessments, which can differ from sale prices, and because rate settings vary by council.

Source: ABS, Total Value of Dwellings, December Quarter 2025, Table 2; Individual council rate schedules and state local government association data, 2025–26.

A higher property price does not automatically mean a higher rate bill. NSW has the highest median house price in the country but one of the lower effective rate percentages. This partly reflects the way local government is structured, with rate revenue spread across many separate councils. In Queensland, Brisbane's consolidated council structure contributes to a higher average rate bill.

Section 04Units

Do unit owners pay higher council rates than house owners?

Unit owners in every state pay a higher percentage of their property's value in council rates than house owners in the same area. The gap is widest in the ACT, where houses are charged at 0.41% of property value and units at 0.72%, a difference of 0.31 percentage points. In Queensland, the gap is 0.14 percentage points: 0.47% for units compared with 0.33% for houses.

The main reason is fixed charges. A rates notice can include waste collection charges, state emergency services levies and minimum contributions that do not always change based on what a property is worth. These charges can apply to both lower-value units and higher-value houses. Because fixed charges make up a bigger share of a lower-value property, unit owners generally pay a higher percentage of their property's value in rates.

Council rate as a % of median unit price, by state

Average annual rate expressed as a percentage of median unit value, December 2025

NSW

0.35%

VIC

0.30%

QLD

0.47%

0.26%

0.27%

TAS

0.31%

0.41%

ACT

0.72%

The ACT records the highest effective rate for units at 0.72% — the same $4,252 bill represents a far larger share of a $593,303 unit than of a higher-value house. Queensland is second at 0.47%. Every state shows a higher rate for units than houses due to flat fees.

Source: ABS, Total Value of Dwellings, December Quarter 2025, Table 2; Individual council rate schedules and state local government association data, 2025–26.

Average annual council rates for units by state, 2025

State median unit price vs average annual council rate, December 2025

State	Median unit price	Avg annual rate	Rate as % of value
NSW	$907,431	$3,188	0.35%
VIC	$641,690	$1,910	0.30%
QLD	$876,474	$4,083	0.47%
SA	$692,676	$1,775	0.26%
WA	$759,687	$2,027	0.27%
TAS	$574,548	$1,800	0.31%
NT	$462,633	$1,900	0.41%
ACT	$593,303	$4,252	0.72%

Average annual rates shown use the same dollar amount for houses and units. The higher effective rate for units reflects the same average charge being measured against lower median unit values.

Source: ABS, Total Value of Dwellings, December Quarter 2025, Table 2; Individual council rate schedules and state local government association data, 2025–26.

The ACT figure of 0.72% stands out. The annual rate of $4,252 there covers territory-wide services, but the median unit price of $593,303 is comparatively modest. The same pattern appears wherever rates are high, but unit prices are lower.

Fixed charges help explain higher effective rates for units

Fixed charges on a rates notice, such as the West Torrens minimum charge of $1,206 for 2025–26, can apply regardless of what the property is worth. For a $460,000 unit, a flat charge of $1,200 already represents 0.26% of the property's value before any other rate is added. For a $1 million house, the same charge is 0.12%. This helps explain why lower-value properties often record a higher effective rate.

Section 05How it's calculated

How are council rates calculated in Australia?

The short answer

Each council works out how much money it needs, then divides that by the total official value of rateable properties in its area. The result is a rate multiplier, also known as the rate in the dollar, a small number usually between 0.001 and 0.005. For a property with an official value of $800,000, that produces a variable rate charge of between $800 and $4,000 before fixed fees are added.

All Australian councils follow a similar seven-step process to set rates each year. A property owner's bill has two parts: a variable charge based on the property's official value, and a set of flat fees. Most people focus on the variable charge, but the flat fees can make up a significant share of the total notice.

Council sets its annual budget Foundation step

Each council determines the total expenditure required to deliver community services and infrastructure for the upcoming financial year. This includes roads, waste collection, parks, libraries, and emergency management programs.

Identify the funding shortfall

The council subtracts expected income from government grants, user fees, and other non-rate sources. The remaining gap is the amount that must be raised through property rates.

Independent property valuations are completed State government role

An independent government valuer assesses properties in the council's area. The value used for rates is an official assessment, not the property's sale price. This official value can differ from what the property would sell for on the open market.

Calculate the rate in the dollar

The council divides the total amount it needs by the combined official value of rateable properties in its area. The result is the rate multiplier, usually between 0.001 and 0.005. This means that for every $1,000 of a property's official value, the owner pays between $1 and $5 in the variable part of their rates.

Apply the rate to individual properties

Each property's official value is multiplied by the rate multiplier. A higher-value property usually produces a higher rate charge. Some councils charge different rates for different property categories, such as homes, businesses or farmland.

Add fixed supplementary charges Flat components

Fixed fees are added to the variable rate charge. These can include rubbish collection charges, state emergency services levies and minimum rates. They can apply regardless of property value, depending on the council and charge type. Many councils also set a minimum rate so that each rateable property contributes at least a base amount.

Issue the rates notice Payment due

The final rates notice is sent to the property owner and must be paid either as an annual lump sum or in quarterly instalments. Paying late can attract penalty interest.

Late payment penalties are significant

In Victoria, unpaid rates attract penalty interest at 10% a year. In Brisbane, it is 12.12% a year, charged daily. Many councils publish hardship policies or payment arrangement options for ratepayers experiencing payment difficulty.

Section 06Calculator

Council rate calculator

Estimate a council rate

Select a state and enter a property value. The estimate applies the state average rate as a percentage of property value.

State or territory

Property value

State averages (rate as % of median property value): NSW 0.20% · VIC 0.20% · QLD 0.33% · SA 0.18% · WA 0.19% · TAS 0.23% · NT 0.26% · ACT 0.41%

Estimated annual rate

$1,594

Based on New South Wales average

Quarterly payment

$398

If paying by instalments

Effective rate

0.20%

Rate as % of property value

This is a general estimate based on the state average rate applied to the entered property value. Actual council rates depend on that council's own valuation of the property and its rate schedule, which can vary significantly between neighbouring councils in the same state.

General information only

This article is based on publicly available data from the ABS, local government sources and council rate schedules. It is general information only and does not constitute financial, legal or tax advice. Council rates can vary depending on the property, official valuation, council area, fixed charges, concessions and payment timing. Readers should refer to the relevant council or a qualified professional for property-specific information.

References

1Australian Bureau of Statistics, Taxation Revenue, Australia, 2024–25. ABS cat. 5506.0.
2Australian Bureau of Statistics, Total Value of Dwellings, December Quarter 2025, Table 2: Median Price and Number of Transfers. Median established house and attached dwelling transfer prices.
3Essential Services Commission Victoria, Annual council rate caps. Rate cap for 2025–26 financial year.
4Merri-bek City Council, Understand your rates. Explanation of how council rates are structured and calculated.
5City of West Torrens, Rate calculation, 2025–26. Includes minimum rate of $1,206.
6City of South Perth, About my rates. Rate structure and billing information, 2025–26.
7Townsville City Council, Rates Benchmarking Report 2025. Comparative council rate data for Queensland.
8ACT Treasury, Budget 2025–26 Cost of Living Budget Statement. Includes ACT general rates and charges.
9Ballina Shire Council, Calculate your rates. Rate-in-the-dollar methodology, NSW.
10Local Government Association of South Australia, How councils work: council rates. Overview of the South Australian rating system.

Methodology: Effective rate percentages are indicative only. They divide the average annual council rate by ABS median transfer prices. Actual rates are based on official council valuations, local rate multipliers, fixed charges, minimum rates and levies.