Are council rates part of body corporate levies in Queensland?

The Queensland Government's descriptions of the administrative and sinking funds do not list them. It says interest schedule lot entitlements give the lot's value for local government rates and charges. The certificate and the levy notice show what a given body corporate charges.

Do owners corporation fees cover water?

It depends on how the scheme is metered and what its budget lists. In Queensland the administrative fund budget can include recurring costs such as electricity, according to the Queensland Government. In Victoria, where the model rules apply, an owners corporation cannot recover from an owner or occupier more than the supplier would have charged for the same goods or services. The budget and levy notice show whether water is charged to the scheme or to the lot.

Is land tax included in strata fees?

No source reviewed lists land tax among the costs that levies cover. The State Revenue Office says land tax may apply if you own property other than your home, and that a home may be exempt.

Can a rental owner claim both?

The ATO lists body corporate administrative fund fees and council rates as separate expenses, each subject to rules about apportionment and about the property being available for rent. A registered tax agent can say how those apply to a particular property.

Do body corporate fees include council rates?

No. Body corporate, owners corporation and strata levies pay for the scheme's own costs, such as insurance, maintenance and administration, and council rates are a separate charge that the local council makes on the property owner. No government page reviewed states this in one sentence, so this guide sets out what the regulators say levies cover and what councils say rates are, as at October 2026.

A levy notice and the budget behind it list what the scheme spends money on. Council rates are a different bill, worked out from the value of the property.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

What body corporate fees pay for

Victoria. Consumer Affairs Victoria (CAV) says an owners corporation can set fees to cover general administration, maintenance and insurance, and levy special fees for extraordinary expenditure. If it has a maintenance plan, it must have a maintenance fund, and the owners corporation decides what part of the annual fees goes into it. Annual fees are charged according to lot liability.

Queensland. The Queensland Government says the administrative fund budget covers maintaining common property and body corporate assets, insurance charges and other yearly costs, with management fees and electricity as examples. The sinking fund covers big or one-off items such as painting or structural repairs, and its budget must reserve for at least nine years after the current financial year.

Neither list names council rates.

Browse new townhouses

See the townhouse developments selling now, with bedrooms, prices and completion dates, city by city.

What council rates are

Local Government Victoria describes rates as a property tax levied by councils to fund local infrastructure and services. A council's required revenue is divided by the total of all property valuations to give a rate in the dollar, and that rate is applied to each property's valuation. The page names capital improved value, which is the value of the land, the building and capital improvements, as the valuation basis.

Councils can also charge for services such as waste collection. Local Government Victoria says the rate cap applies to a council's total rate revenue, not to individual properties, and that waste charges and other user fees remain uncapped.

In Queensland, lot entitlements are used for more than the body corporate's budget. The Queensland Government says the interest schedule lot entitlements give the value of the lot for calculating local government rates and charges. That points to rates being worked out lot by lot, not as part of the body corporate budget.

The Victorian pages do not discuss units, townhouses or owners corporations. How a particular council rates each lot and any common property is a question for that council.

What sits inside and outside the levy

Cost	Through the levy?	What the sources say
Maintenance and repairs of common property	Yes	CAV fees page, Queensland administrative fund
Insurance	Partly	Victoria and Queensland list insurance. In Queensland, owners of freestanding buildings on a standard format plan insure their own building
Management and administration	Yes	CAV fees page, Queensland administrative fund
Long-term repairs fund	Yes, as its own budget	Victorian maintenance fund, Queensland sinking fund
Council rates	No	Councils bill the property owner on the property's valuation
Land tax	Not listed	The State Revenue Office says land tax may apply if you own property other than your home, and that a home may be exempt

Worked example (hypothetical)

These figures are invented to show the arithmetic, not typical amounts.

Item	Billed by	Working	Annual cost
Owners corporation fees	Owners corporation	$1,150 a quarter x 4	$4,600
Council rates	Council	$700,000 valuation x 0.0035 (0.35 cents in the dollar)	$2,450
Total		$4,600 + $2,450	$7,050

The two numbers move for different reasons. Fees follow the owners corporation's budget and the lot's share, and rates follow the council's budget and the valuation. A rise in one does not set the other.

What the tax rules show

The Australian Taxation Office lists the two as separate rental expenses. Its page on common property expenses lists body corporate administrative fund fees and charges as one item, and council rates, water charges and land tax as another, among expenses that can be claimed immediately for a rental property. Strata fees, tax deductibility and GST covers that.

Checking a particular townhouse

Victoria. CAV lists what an owners corporation certificate must include: fees for the lot, funds held, liabilities, insurance, legal matters and manager details. Council rates are not on the list. What an owners corporation certificate is sets out the contents.
Queensland. The body corporate certificate tells a buyer what levies apply. The Queensland Government points to the levies set for the next financial year and the latest financial statement as things worth reading.
Rates. Councils set rates through their own budget process, so the council that covers the address is the place to confirm the figure.

Common questions

Are council rates part of body corporate levies in Queensland?: The Queensland Government's descriptions of the administrative and sinking funds do not list them. It says interest schedule lot entitlements give the lot's value for local government rates and charges. The certificate and the levy notice show what a given body corporate charges.
Do owners corporation fees cover water?: It depends on how the scheme is metered and what its budget lists. In Queensland the administrative fund budget can include recurring costs such as electricity, according to the Queensland Government. In Victoria, where the model rules apply, an owners corporation cannot recover from an owner or occupier more than the supplier would have charged for the same goods or services. The budget and levy notice show whether water is charged to the scheme or to the lot.
Is land tax included in strata fees?: No source reviewed lists land tax among the costs that levies cover. The State Revenue Office says land tax may apply if you own property other than your home, and that a home may be exempt.
Can a rental owner claim both?: The ATO lists body corporate administrative fund fees and council rates as separate expenses, each subject to rules about apportionment and about the property being available for rent. A registered tax agent can say how those apply to a particular property.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.