Hobart* homeowners have experienced the second-highest increase in council rates of any capital city over the past decade, according to a new study. Property rates in Hobart have surged by a cumulative total of 46% in the last 10 years.
Hobart property owners who were paying $1,500 in annual council rates a decade ago would now be paying $2,190.
Hobart’s council rate increase of 46% outpaced the national average of 39% and was second only to Canberra, where rates soared 83%. Meanwhile, Brisbane homeowners saw a 43% increase in council rates. In Melbourne, rates rose in line with the national trend at 39%, while Sydney homeowners faced a slightly lower increase of 35%, according to inflation data from the ABS.
In 2024 alone, Hobart recorded the steepest council rate increases of all capital cities, rising 6.5% — well above the national average of 4.9%. At the same time, rents in Hobart increased by just 1.1%.
Money.com.au’s Property Expert, Mansour Soltani, said council rates are becoming a major concern among homeowners, particularly in Hobart.
“Rising house prices in Hobart, along with inflation and ongoing council rate hikes, have pushed property rates to record highs, putting further financial strain on homeowners,” he said. “Property rates act like a ‘silent mortgage’, one that homeowners can’t shop around for or negotiate.”
“It’s also a nationwide concern, with our recent survey revealing that 18% of Australians ranked council rates as their most dreaded bill, placing them ahead of insurance premiums and childcare costs. This highlights just how much of a financial strain they’ve become for homeowners across the nation.”
Nationally, property rates and charges have seen the highest price increase of any property-related expense for homeowners, rising 4.9% in 2024 — outpacing costs of maintenance and repairs, utilities and other housing expenses.
The only expense rising faster was rent, which increased by 6.4%, according to ABS data.
Council rates typically increase once a year, often with effect in the September quarter.
Most local councils set their budgets and determine new property rates in the first half of the year, in preparation for the subsequent financial. Any rate changes — usually increases — typically come into effect from July 1, meaning homeowners start seeing the impact in their September quarter bills.
* Editor’s note: we asked which council areas were considered to be Hobart for the purpose of this survey. The response received was: “It’s Hobart as a capital city, the CPI doesn’t break down inflation and costs by LGAs unfortunately.”
