Council Rate Adjustment


Your local council calculate your rate on a yearly basis.


The rate will start on 1 July this year and will end on 30th June next year.


Let's do an example.


Let's say there are 365 days in 1 year.


Let's say that the council charges $2 a day and for the year would be $730.00.



Now, let's say your name is Kenneth and you bought a house from Mrs. Humphries


Settlement is on 20 July and council want the full yearly pay of $730 on that day.


So what will Kenneth have to pay and what will Mrs Humphries need to pay?


Calculation would be:


Kenneth have to pay 345 days /365 days  time by $730 = $690


Mrs. Humphries have to pay 20 days/ 365 days time $730 = $40



Now let's say that on the 5th of July Mrs. Humphries paid in full to council of $730, so how much will Kenneth need to reimburse to Mrs. Humphries?




Since Mrs. Humphries should only be paying $40.00 for 20 days of the year that she own that property.


After the 20 July, Kenneth is the owner. Kenneth need to reimburse Mrs. Humphries $690.00 on the day of settlement.