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How are rates and taxes adjusted at settlement?

FAQs

How are rates and taxes adjusted at settlement?

The rates and taxes for the current year are split between you and the other party, so each of you pays for the period you owned the property. That covers local authority rates, Water Corporation rates, strata levies and land tax, together called outgoings.

The seller pays the outgoings up to and including the settlement date or the possession date, whichever is earlier. The buyer pays from the day after. We notify those authorities of the change of ownership.

Land tax is treated differently. It is adjusted only if the property is commercial. If the property is your primary place of residence it is exempt, so there is nothing to adjust. If it is not your primary place of residence, an investment property for example, land tax may apply and the seller pays it before or at settlement.

Your settlement statement sets out the adjustments on your own transaction. See What is a settlement?.

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