Which state is best for rate-sale investing?

There is no single 'best' state — it depends on your goals. Each state and territory runs the process under its own Local Government Act, so the arrears trigger, notice requirements and land identifiers differ. NSW councils can sell after rates are five or more years overdue (s713), while Victoria, Queensland, South Australia and Western Australia generally allow a sale after about three years. Always confirm the current rules with the council.

How long must rates be overdue before a council can sell the land?

It varies by state. In NSW a council can sell land once rates and charges are five or more years overdue (Local Government Act 1993, s713). In Victoria (s181), Queensland, South Australia (s184) and Western Australia the threshold is generally around three years. Tasmania, the Northern Territory and the ACT set their own periods. Confirm the exact threshold with the council or the rating authority.

How do I find rate sales in a specific state?

Use Rate Sales Australia to browse every state and territory in one place. Each state page shows active sales with the reserve, auction date, council and locality. You can also go to the source: councils advertise sales of land for overdue rates in the government gazette and the local press.

Rate Sales by State & Territory in Australia

Q: Can the owner stop the sale by paying?

Generally yes. In every state and territory the owner can usually pay the overdue rates, charges and costs to stop the sale right up until the auction. Once the land is sold at a completed auction and title transfers to the buyer, there is generally no redemption.

The rules for council rate sales in Australia are not uniform. Each state and territory has its own Local Government Act, arrears trigger, land-title system, and administrative process. Understanding these differences matters before you invest — a strategy that works in NSW may not apply the same way in Victoria, Queensland or Western Australia.

This guide compares the eight states and territories side by side to help you work out where the process best fits your investment goals, risk tolerance, and budget.

Full Comparison Table

State / territory	Governing statute	Arrears before sale	Sale format
New South Wales	Local Government Act 1993 (s713)	5+ years overdue	Public auction
Victoria	Local Government Act 1989 (s181)	~3 years overdue	Public auction
Queensland	Local Government Regulation 2012 / City of Brisbane Regulation 2012	~3 years overdue	Public auction
South Australia	Local Government Act 1999 (s184)	~3 years overdue	Public auction
Western Australia	Local Government Act 1995 (s6.64)	~3 years overdue	Public auction
Tasmania	Local Government Act 1993 (s137)	~3 years overdue	Public auction
Australian Capital Territory	Rates Act 2004 (ACT)	Set by the Commissioner	Sale of the Crown lease
Northern Territory	Local Government Act 2019	Set by the council	Public auction

How the Process Differs by State

Each state and territory has its own advantages and risks for investors.

New South Wales (NSW)

Governed by the Local Government Act 1993, s713 — a council may sell land where rates and charges are five or more years overdue
The reserve is set to recover the overdue rates and charges plus the costs of the sale
Land value is supplied by the NSW Valuer-General
Land is usually identified by Lot and Deposited Plan (DP), or a Strata Plan (SP), with a Torrens Certificate of Title
Sold at public auction; the council must advertise the sale beforehand

Victoria (VIC)

Governed by the Local Government Act 1989, s181 (with functions moving to the Local Government Act 2020) — a council may sell land where rates are about three years or more overdue
The council valuation uses the site value and the capital improved value
Land is identified by Lot and Plan of Subdivision (PS) with a Volume & Folio
Sold at public auction after the required notice

Queensland (QLD)

Governed by the Local Government Regulation 2012 (and the City of Brisbane Regulation 2012 for Brisbane) — a council may sell land for overdue rates and charges, generally after about three years
Land is identified by Lot on Plan (for example, Lot 5 on RP123456, or a Survey Plan, SP)
Sold at public auction; the council issues notices to the owner before the sale

South Australia (SA)

Governed by the Local Government Act 1999, s184 — a council may sell land where rates have been in arrears for three years or more
Land is often identified by Certificate of Title Volume & Folio and, in older titles, Allotment & Section
Sold at public auction after the required notices

Western Australia (WA)

Governed by the Local Government Act 1995 (s6.64) — land may be sold where rates have been unpaid for at least three years
Land is identified by Lot on a Deposited or Survey-Strata Plan with a Volume & Folio
Sold at public auction; unsold land may later be dealt with by the council

Tasmania (TAS)

Governed by the Local Government Act 1993 (s137) — a council may sell land for unpaid rates after the set arrears period
Land is identified by a Volume & Folio Certificate of Title
Sold at public auction after the required notice to the owner

Australian Capital Territory (ACT)

Rates are collected by the ACT Revenue Office under the Rates Act 2004 (ACT)
ACT land is generally held on a 99-year Crown lease, so a sale for overdue rates is a sale of the lease rather than a freehold title
The Commissioner for ACT Revenue can act once rates are well in arrears

Northern Territory (NT)

Governed by the Local Government Act 2019 — councils may sell land for rate arrears
Parts of the NT are unincorporated (outside any council area), so rating and sale arrangements can differ
Sold at public auction after the required notices

Redemption Explained

The right of redemption is the period during which the original owner can keep the property by paying the full debt. It is one of the most important things for an investor to understand.

Paying Before the Auction (Lower Risk)

In every state and territory, the owner can usually pay the overdue rates, charges and costs to stop the sale right up until the auction. Once the sale is completed (the balance is paid and title transfers), the property passes for good to the buyer, giving immediate certainty of title.

After a Completed Sale

Once title transfers to the buyer at a completed auction, there is generally no redemption — the former owner cannot reclaim the land. Always read the specific conditions of the sale before you bid, as the process and notice periods vary by state.

Which State Is Best for Investing?

There is no single “best” state — it depends on your investment strategy:

Best for Beginners

NSW and Queensland — large councils run regular, well-advertised sales of land for overdue rates, with clear notices and searchable Torrens titles that are easy to verify.

Best for Volume and Variety

Queensland and Victoria — many councils across large populations mean a steady flow of sales and a wide range of property types.

Best for Investors on a Tight Budget

Rural councils in any state — because the reserve is set to recover the overdue rates, vacant rural blocks in areas with less economic activity can carry very low reserves.

Best for Experienced Investors

WA, SA and TAS — smaller markets can mean less competition, but they reward investors who understand each state's land-identifier system and notice requirements.

Key Risks by State

State / territory	Key risk
NSW / QLD	No interior inspection; strong competition can push prices well above the reserve
VIC / SA / WA	Notice periods and land identifiers differ — confirm the exact process with the council
TAS / NT / ACT	Fewer sales and, in the ACT, a leasehold (Crown lease) rather than a freehold title

Governing legislation (primary sources)

Council rate sales in Australia are run under each state and territory's own legislation. The law can change, so always confirm the current text and the specific conditions of the sale before you bid. These are the official sources:

NSW — Local Government Act 1993 (s713), NSW legislation; land value from the NSW Valuer-General.
VIC — Local Government Act 1989 (s181) and Local Government Act 2020, Victorian legislation.
QLD — Local Government Regulation 2012 and City of Brisbane Regulation 2012, Queensland legislation.
SA — Local Government Act 1999 (s184), South Australian legislation.
WA — Local Government Act 1995 (s6.64), Western Australian legislation.
TAS — Local Government Act 1993 (s137), Tasmanian legislation.
ACT — Rates Act 2004 (ACT), ACT Revenue Office.
NT — Local Government Act 2019, Northern Territory legislation.

This comparison is general information, not legal advice. Always seek advice from a solicitor before you bid.

💡 Investor tip: Start with one state and learn its rules thoroughly before you branch out. The most successful investors specialise in one or two states rather than spreading themselves across all eight. Master the due diligence, title-search process, and bidding mechanics of your chosen state first.

Explore Guides by Sale Type

Read our full guide for each type of sale, with real data from a state page:

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