Council rates explained: Where your money goes and why it matters
If you own a property in South Australia, you’re probably paying council rates. But what exactly are you paying for? Let’s clear up some common myths.
What are council rates?
Council rates are a type of property tax. Unlike income tax, which goes to state and federal governments, council rates stay in your local area and are managed by your elected council. These rates help fund the essential services and facilities your community relies on – including rubbish collection, road and footpath maintenance, parks and playgrounds, libraries, local events, and sporting and recreation facilities.
Myth: Council rates are just a way for councils to make money
Fact: Council rates are not just another bill – they are a property tax that directly funds the services and infrastructure your community relies on every day. This can include bicycle tracks, bushfire prevention, cemeteries, community buses, community centres, dog and cat management, festivals and events, food and health inspections, public swimming pools, street lighting, tourism and library programs.
Councils across South Australia collectively spend over $2.5 billion a year and about 70 per cent of that comes from rates. Council rates only make up roughly 3 per cent of your total taxes paid – the rest is collected by state and federal governments. South Australians pay on average around $39 per week in council rates.
Myth: Council just picks up the bins – why are rates so expensive?
Fact: Bin collection is only a small part of what councils do.
You might like
Councils look after roads, footpaths, parks, playgrounds, community spaces and much more. They handle local planning, run libraries, support community groups, host events and deliver public health and environmental programs. Waste collection is just one part of the picture – councils actually provide more than 200 services across the community.
You might not use every service, but they all help make your neighbourhood a better place to live. Just like income tax goes toward a range of federal services (even the ones you do not personally use), council rates support the full mix of local services that benefit the whole community.
Myth: Councils just make up how much I pay.
Fact: There is a method behind the maths. Councils first work out their budget for the year based on planned services and infrastructure. They then:
- Add up the total value of all rateable properties in their area
- Divide the required funding by that total to get the rate in the dollar
- Multiply that rate by your property’s value (usually set by the Valuer-General)
It is not a guess – it is a calculated formula.
Want to have a say on how your council rates are spent? Head to the Local Councils website or visit your council website to get involved.
Myth: Council decides how much my property is worth.
Fact: Property values are set by an independent authority, not by council. The state government’s Office of the Valuer-General determines the value of all properties in South Australia each year. This valuation includes the land and any buildings on it. If you believe your valuation is incorrect, you can lodge an objection with the Valuer-General within 60 days of receiving your rates notice.
Myth: Rates only go up because councils overspend.
Fact: Rates can rise for the same reasons as your groceries or petrol costs – inflation, rising material costs and increased service demands.
New developments, population growth and new infrastructure like roads, lighting and waste services also play a part. Combined, South Australian councils maintain over $29 billion in public assets such as roads, pavements, jetties, parks and playgrounds. Council spending is thoughtfully planned and you can see exactly where the money goes – it is publicly available. Ratepayers are encouraged to have their say through public consultation on their council’s budget.
Myth: Rates should be the same everywhere.
Fact: Every council is different – rural vs urban, small vs large, high-value property vs low. Services offered, infrastructure needs and property values all influence the rates you pay. That is why two similar houses in different suburbs can receive different bills.
Myth: There is no help if you are doing it tough.
Fact: Councils understand that financial hardship happens. Many offer payment plans, rate deferrals or other forms of support. Each case is assessed individually, so do not hesitate to reach out to your local council if you are feeling the pressure to find out what options are available.
More questions?
Check your latest rates notice or visit the Local Councils website to learn more about how your rates are calculated – and how they support your community.
This article was produced in partnership with LGA South Australia.
