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.