Council Rates
Government & Compliance
Annual charges levied by local councils to fund community services, infrastructure, and maintenance in your area.
Full Explanation
Council rates are a compulsory annual charge on all property owners, calculated based on your property's unimproved land value (or capital improved value in some states). They fund local services including roads, parks, waste collection, libraries, and community facilities. For investment properties, council rates are fully tax-deductible in the financial year they are paid. Rates vary significantly between councils — from $1,500 to $5,000+ per year for residential properties.
Example
Your investment property in Brisbane has council rates of $2,100 per year. This is fully deductible against your rental income on your tax return.
Frequently Asked Questions
Are council rates tax deductible for investment properties?
Yes. Council rates paid on an investment property are fully deductible in the year they are paid. They are claimed as a rental expense on your tax return.