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Over the last 10 years, council rates have increased by 39 per cent across the nation, according to a Money.com.au report.
“Council rates have crept up faster than almost any other housing cost, acting like a ‘silent mortgage’ that home owners can’t exactly shop around for or negotiate,” said Mansour Soltani, Money.com.au’s property expert.
“Rising property rates, coupled with high interest rates on mortgages, have created a double financial squeeze, making home ownership increasingly unaffordable for many Australians.”
He added: “Our recent survey found that 18 per cent of Aussies ranked council rates as their most dreaded bill, placing them ahead of insurance premiums and childcare costs. This highlights just how much of a financial strain they’ve become for home owners.”
Some cities saw rates climb more than double the national average over the last decade. The results for each were:
- Canberra (up 83 per cent)
- Hobart (up 46 per cent)
- Brisbane (up 43 per cent)
- Melbourne (up 39 per cent)
- Perth (up 37 per cent)
- Sydney (up 35 per cent)
- Adelaide (up 32 per cent)
This rate rise data comes off the back of a recent controversy involving North Sydney Council, which has voted to increase rates by 87 per cent over two years.
Mayor Zoë Baker labelled the move an “outrage” as residents took to the street to voice concern.
ABC News reported that “of the almost 40 people who spoke during the meeting, a majority opposed the increase”.
One North Sydney resident who has lived in the area for the past 25 years was vocal on the matter: “How can you propose implementing an 87 per cent rate increase over two years when the community feedback is so overwhelmingly negative?” Martin Dudley said.
Rates reportedly increase once a year, often felt in the September quarter, said Money.com.au’s data and research expert, Peter Drennan.
“Most local councils set their budgets and determine new property rates for the financial year ahead. Any rate changes – and they’re usually increases – typically come into effect from 1 July, meaning home owners start seeing the impact in their September quarter bills,” he said.
Council rates grew by 4.9 per cent throughout 2024, outpaced only by rent, which climbed 6.4 per cent. This puts these expenses above other living expenses such as maintenance, repairs and utilities.
