NSW Does Council Pay Back Unused Rates?

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William H

Member
23 December 2014
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I just sold my house in New South Wales. Moved to Queensland. I paid council rates in full at the start of this financial year. Now the Council say they don't pay back unused rates. Is this right?
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
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www.hutchinsonlegal.com.au
In Victoria, the difference is often done as part of the property settlement by the conveyancer. Ask your conveyancer if they will be doing the adjustment for you.
 

Sarah J

Well-Known Member
16 July 2014
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Melbourne, Victoria
Yes, the council does not usually pay back rates. Generally, what happens is, when an owner sells their house, they apportion any rates/bills/expenses related to the house already paid and reclaim this back from the new purchaser before settlement date or at another time agreed by the parties. This apportioned amount forms part of the purchase price and you should add it on top of the agreed price otherwise, it is presumed that it is already calculated in.