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?

 

Answer:

 

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.