Unpaid rates auctions: A controversial yet necessary tool for local councils
In a recent development, the Rockhampton Regional Council in central Queensland has successfully recovered over $1 million in overdue rates and charges through the sale of six properties at a public auction. This event, while generating significant revenue, also raises important questions about the role and responsibilities of local governments in managing unpaid rates.
The Auction Process
The auction, held on Thursday, was a result of the council's efforts to collect outstanding rates and charges from property owners. Initially, 30 property owners received final notices, and six properties were eventually put up for sale. The properties, ranging from land to residential and commercial spaces, fetched a combined price of $1.128 million, with the highest bid going to an interstate buyer who purchased the Central Hotel in Koongal for $218,000.
A Last Resort
Under Queensland's Local Government Act 2012, councils have the authority to sell residential properties if rates and charges remain unpaid for three years or more, and one year for commercial properties. This measure is seen as a last resort, with councils aiming to recover the costs of providing services to the community. The proceeds from the sales are used to pay off outstanding fees, with any remaining amount going to the property owner.
Rates as a Major Revenue Source
Rates income is a significant contributor to local council budgets. For the Rockhampton Regional Council, rates account for a substantial 69% of its budget. As of March 2026, 4.32% of the rates remained unpaid, highlighting the challenge of collecting these funds.
A Growing Trend
The Rockhampton Regional Council's auction is not an isolated incident. Other councils in central Queensland, such as the Isaac Regional Council and the Central Highlands Regional Council, have also resorted to auctions to recover unpaid rates. The Isaac Regional Council, for example, sold five properties in February, generating a combined $511,147.
The Human Cost
While auctions provide a means for councils to recover unpaid rates, they also carry a human cost. Property owners who fail to pay their rates may face the loss of their homes or businesses. This raises ethical questions about the balance between collecting revenue and supporting the community. Matt Burnett, the president of the Local Government Association of Queensland and mayor of the Gladstone Regional Council, acknowledges this dilemma. He states that auctions are a last resort, and in most cases, outstanding amounts are paid before the auction takes place.
A Necessary Evil?
From my perspective, unpaid rates auctions are a necessary evil. They serve as a reminder of the importance of paying rates and the consequences of non-payment. However, it is crucial for councils to explore alternative methods to encourage timely payments and support those facing financial difficulties. One thing that immediately stands out is the potential for councils to engage in more proactive communication and assistance programs to prevent situations from escalating to the point of auction.
A Broader Perspective
Unpaid rates auctions highlight the delicate balance between local government finances and community well-being. While rates are essential for funding public services, the impact on individuals and businesses cannot be overlooked. As we move forward, it is essential to find innovative solutions that promote financial responsibility while also supporting the community's overall prosperity. What many people don't realize is that these auctions are not just about recovering money; they are about the broader health and sustainability of our local communities.
