Why your council rates went up in 2026-27
Rate notices land in July, and the increase on them is rarely explained in a way that answers the actual question. In New South Wales the number is capped by a regulator and the cap is not the whole story. In Queensland there is no cap at all, and the range between councils this year ran from 4% to 20.8%. Here is what set your figure.
In New South Wales, council rates rises are capped each year by the IPART rate peg, and councils may exceed it only with an approved special variation. In Queensland there is no equivalent cap: each council sets its own increase in its annual budget, and for 2026-27 those ranged from 4% at Cairns Regional to 20.8% at Somerset, with Sunshine Coast the highest of the larger councils at 11.7%.
Key statistics
- NSW mechanism
- IPART rate peg
- QLD mechanism
- Set by each council
- QLD range 2026-27
- 4% to 20.8%
- Highest QLD rise
- Somerset, 20.8%
- Lowest QLD rise
- Cairns, 4%
Methodology
Queensland council figures are the minimum residential general rate for an owner-occupied principal place of residence, a floor rather than a typical bill. New South Wales council figures are the average residential rate reported to the Office of Local Government, uplifted by each council's IPART rate peg. It is a typical bill, not a floor. The two states publish different statistics and are never averaged or ranked together on this site. Queensland councils set their own increases with no cap, so the range is wide. New South Wales rises are bounded by the IPART rate peg unless a council is approved for a special variation. Waste charges, levies and separate charges are excluded.
New South Wales, the rate peg and the way around it
IPART sets a rate peg each year. It caps the total general income a council may collect, not the amount on any individual notice. That distinction matters more than it sounds.
Because the cap applies to total income, your own bill can rise by more than the peg while the council stays inside it. If land values in your street moved differently to the rest of the council area, your share of the same total shifts. Nothing improper has happened and the council has not exceeded anything. Your slice of the pie changed shape.
Councils that need more than the peg apply for a special variation. These are assessed publicly and are usually granted for several years rather than one, so a council part-way through an approved variation will keep rising above the peg until it finishes. Blacktown is running an approved variation of 11.54% for 2026-27. We list the councils approved to exceed the cap in the NSW rate rise breakdown.
Queensland has no cap, so the range is wide
Queensland has no rate peg. Each council adopts its own budget in June and sets the minimum general rate itself, which is why the spread this year is so much wider than anything possible in New South Wales.
| Council | Increase 2026-27 |
|---|---|
| Somerset Regional Council | 20.8% |
| Sunshine Coast Council | 11.7% |
| Mackay Regional Council | 10.4% |
| Townsville City Council | 7.2% |
| Toowoomba Regional Council | 6.9% |
| Noosa Council | 6.1% |
| Scenic Rim Regional Council | 5.8% |
| Ipswich City Council | 5.4% |
| City of Gold Coast | 4.7% |
| Cairns Regional Council | 4% |
Sunshine Coast at 11.7% against Cairns at 4% is the number worth holding onto. Both are large regionalan councils in the same region, and one raised rates more than three times as fast as the other in a single year.
Why one year matters more than it looks
A single increase is easy to absorb. The reason to pay attention is that rates compound, and most people hold a home for about a decade.
A $1,771 rate rising 11.7% a year would pass $3,000 inside six years. The same rate rising 4% would still be under $2,250. Neither council is likely to hold its 2026-27 rate for a decade, so treat that as an illustration rather than a forecast, but the direction of travel is a real thing to weigh when you are choosing between council areas.
One year is not a trend. A council can raise sharply after several flat years, or be funding a specific project. Before drawing conclusions from a single figure, look at the council's own budget documents for the years either side of it.
What to check on your own notice
Three things explain most surprises. First, whether your land valuation changed, because in New South Wales that shifts your share independently of the council's total. Second, whether your council is running a special variation, which is public information. Third, whether the increase you are looking at is the general rate or the total including waste and levies, because those move separately and the waste charge often rises faster.
If you want to see where your council sits against every other one, we rank them: all 126 NSW councils and the Queensland comparison.
To see how much of a household total the rates line actually is, work out a suburb's yearly running cost across all four components.
Frequently asked questions
What is the NSW rate peg?
A cap set by IPART each year on how much total general income a council may collect from rates. It limits the council total, not the amount on an individual notice, which is why your own bill can rise by more than the peg while the council remains compliant.
Why did my rates rise more than the rate peg?
Most often because your land valuation moved differently to the rest of the council area, which changes your share of the same capped total. It can also be a council running an approved special variation, which permits an increase above the peg.
What is a special variation?
An application by a NSW council to raise rates above the peg. It is assessed publicly by IPART and is typically approved for several years rather than one. Blacktown is running one at 11.54% for 2026-27.
Does Queensland have a rate peg?
No. Queensland councils set their own increases in their annual budget, adopted in June. For 2026-27 the range across the councils where we hold a comparable prior-year figure ran from 4% at Cairns Regional to 20.8% at Somerset.
Which Queensland council raised rates the most in 2026-27?
Somerset Regional Council at 20.8%, one of the smallest councils in the state. Among the larger councils, Sunshine Coast Council raised the most at 11.7%.
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