Key takeaways
Over the past decade, council rates have increased by 39% nationally, outpacing inflation and adding financial strain to homeowners.
According to Money.com.au, council rates rose by 4.9%, higher than maintenance, utilities, and home insurance.
With high mortgage repayments, rising utilities, and insurance costs, homeowners are under increasing financial stress.
Most homeowners keep a close eye on interest rates.
After all, it’s one of the biggest factors influencing mortgage repayments.
But there’s another rising cost that has been quietly creeping up—one that you can’t negotiate, refinance, or shop around for.
Council rates.
Over the past decade, council rates have surged by 39% nationally, outpacing inflation and squeezing homeowners even further.
And in some cities, it’s even worse: Canberra residents have seen their rates almost double, jumping a staggering 83%.
Hobart isn’t far behind at 46%, and Brisbane homeowners are now paying 43% more.
For many, this has become a “silent mortgage”, a growing cost that homeowners can’t escape.
Unlike electricity or insurance, you can’t switch providers.
You just get the bill, and you pay.
Why are council rates rising so fast?
Council rates are meant to cover local services such as roads, waste collection, parks, and community infrastructure.
However, they are also determined by property values and local government budgets.
As home prices have climbed, so have rates.
And because local councils set their own rates annually, homeowners are seeing their bills go up year after year, often without much explanation.
According to Money.com.au, council rates were the fastest-rising housing cost in 2024, jumping 4.9%.
This is higher than maintenance, utilities, or home insurance.
The only thing rising faster? Rent which is up 6.4%.
Money.com.au’s Property Expert, Mansour Soltani, puts it bluntly:
“Council rates have crept up faster than almost any other housing cost, acting like a ‘silent mortgage’ that homeowners can’t exactly shop around for or negotiate.”
How this impacts homeowners
This surge in council rates is just another hit to the cost of living.
Mortgage holders are already feeling the pinch with high interest rates.
Add in rising utilities, insurance, and now ever-increasing council rates, and it’s no wonder affordability is at breaking point.
A recent survey found that 18% of Australians rank council rates as their most dreaded bill, beating out insurance premiums and even childcare costs. It’s become a real financial burden.
Worse, because rate changes usually take effect from July 1 each year, many homeowners get a nasty surprise in their September quarter bills, when they’re already juggling other expenses.
What can homeowners do?
Unfortunately, unlike negotiating a lower mortgage rate, there’s very little you can do about council rates.
But here are some steps to ease the burden:
- Check your property valuation – Your council rates are based on the assessed value of your home. If you think it’s been overvalued, you may be able to challenge it.
- Understand your council’s spending – Some councils justify rate hikes by increasing spending on new projects. Keep an eye on where your money is going and have your say in local budget discussions.
- Factor it into your budget – Treat council rates like an unavoidable cost and make sure you account for increases each year.
The bottom line
Homeownership in Australia is already a costly exercise.
Council rates, once an afterthought, are now becoming a serious financial burden, adding to the long list of costs homeowners need to juggle.
While there’s little power to negotiate, being informed and proactive can at least help you manage the impact.
In my mind, homeownership isn’t just about mortgage repayments anymore.
The silent mortgage of council rates is one that every homeowner now needs to plan for.
