Strata Properties in NSW: Council Rates vs Strata Levies Explained
Own a unit or townhouse? You pay both council rates and strata levies. Here is the difference between each charge and what to do if your land value is wrong.
Strata owners in NSW receive two major recurring bills: council rates and strata levies. They are calculated differently, spent on different things, and managed by different organisations.
Side-by-Side Comparison
| Feature | Council Rates | Strata Levies |
|---|---|---|
| Charged by | Local council | Owners corporation |
| Purpose | Local roads, parks, libraries | Building & common area maintenance |
| Based on | Land value × rate in dollar | Annual budget ÷ lot entitlement |
| Set by | Council (within IPART caps) | Owners at AGM vote |
| Tax deductible? | Yes (for investment) | Yes (for investment) |
| Where to object | NSW Valuer General | NCAT (strata disputes) |
How Strata Rates are Calculated
Councils value the entire strata scheme as one parcel of land. Your individual rates bill is then determined by your unit entitlement.
Your Rate = (Total Scheme Land Value × Your Entitlement %) × Council Rate in Dollar
Common Strata Valuation Issues
Zoning Assumptions
Schemes valued as development sites even if they have no realistic capacity for uplift.
Outdated Entitlements
Entitlements set years ago may no longer reflect the relative value of lots correctly.
Heritage Overlays
Heritage controls affecting the whole site often go unadjusted in mass valuations.
Mixed-Use Errors
Incorrect apportionment between residential and commercial lots in a single scheme.
Can you object to a strata valuation?
Yes. Individual owners have a right to object to their lot's valuation. However, because you share the scheme's land value, a successful objection by one lot owner often has implications for the whole building.
Disclaimer: This article provides general information about strata rates in NSW. For strata levy disputes, contact NCAT. For land valuation objections, refer to the NSW Valuer General.
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