It’s no secret that mortgage repayments have been stretching Aussie budgets, but they’re not the only housing cost on the rise. Council rates across the country have been climbing fast—so fast that they’re being dubbed a “silent mortgage” that homeowners simply can’t avoid.
According to a Money.com.au report, council rates have surged 39 per cent over the past decade, adding even more financial pressure on already struggling households.
Money.com.au’s property expert, Mansour Soltani, pointed out that council rates have been increasing faster than nearly any other housing expense.
“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,” Soltani explained.
With property rates climbing and interest rates still high, many Australians are feeling the financial squeeze from both ends.
“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 homeowners,” Soltani added.
Where have council rates increased the most?
Some Aussie cities have been hit harder than others, with Canberra seeing the steepest rise in council rates:
- Canberra – up 83%
- Hobart – up 46%
- Brisbane – up 43%
- Melbourne – up 39%
- Perth – up 37%
- Sydney – up 35%
- Adelaide – up 32%
The timing of these rate hikes doesn’t make things any easier, either. According to Money.com.au’s data and research expert, Peter Drennan, most councils set their budgets annually, leading to the impact being felt toward the costly end of year season.
“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 homeowners start seeing the impact in their September quarter bills,” he explained.
Sydney’s 87 per cent rate hike sparks outrage
The rising cost of council rates has become a hot topic in North Sydney, where residents are furious over a massive 87 per cent rate increase set to take place over two years.
North Sydney Mayor Zoë Baker slammed the increase as an “outrage”, while frustrated locals voiced their anger at a council meeting.
According to ABC News, nearly 40 people spoke at the meeting, with the majority opposing the rate increase. Long-time local Martin Dudley, who has lived in North Sydney for 25 years, questioned the decision:
“How can you propose implementing an 87 per cent rate increase over two years when the community feedback is so overwhelmingly negative?” he asked.
Councils say they can’t absorb costs anymore
As frustration grows among homeowners, some local councils say they’re left with no choice but to pass on rising costs.
Northern Beaches Mayor Sue Heins told The Project this week that councils can’t continue absorbing price increases when everything—from power and water bills to insurance—is going up.
“The cost of everything is increasing, whether it’s your power bill, whether it’s your water bill, whether it’s insurance—everything is increasing,” Heins said.
“There is a point at which councils have tried to absorb as many increases as possible, but we can’t keep being the credit card.”
With council rates up nearly 5 per cent in 2024 alone, outpacing most other housing costs except rent, many Aussie homeowners are left wondering how much more they’ll have to fork out in the years ahead.
