Calculate the settlement adjustment amounts you may need to reimburse the vendor for prepaid council rates, water rates, strata levies, and body corporate fees using daily pro-rata maths from your settlement date. The line-by-line breakdown lets you check the figures in your solicitor's settlement statement before funds are exchanged.

What is a settlement adjustment?

It is a one-off amount the buyer pays the seller at settlement to reimburse them for things they have already paid in advance - council rates, water service charges, strata levies and body corporate fees. The seller paid the bill for a period that goes past the settlement date, so you reimburse them for the days that fall on your side of the line.

Why does the buyer pay the seller at settlement?

Council rates, strata levies and water service charges are billed in advance for a period (a quarter, a year, etc.). On settlement day the seller hands you a property they have already paid bills on into the future. The settlement adjustment splits each bill so the seller gets credited for the days after settlement that they no longer benefit from.

How is the daily rate calculated?

Daily rate is the annual amount divided by 365 (or 366 when the bill period spans Feb 29 of a leap year). Then days reimbursed counts from the day after settlement through to the last day of the bill period inclusive. Multiply the two and you have the reimbursement for that line.

What if my council bills annually, not quarterly?

Enter the annual amount and the start and end dates of the full annual bill period instead of the quarter. The math is the same - daily rate against the days remaining. If the bill straddles a leap-year Feb 29, the calculator uses 366 days automatically.

Do these defaults match my actual rates?

The state defaults are typical median figures, not your specific property. Council rates vary a lot by local government area - a Sydney inner-west terrace pays very different rates to a Penrith house. As soon as you have the seller's actual rate notice (your conveyancer will request it), replace the annual amount with that number.

Is this financial advice?

No. This is general information to help you sanity-check a settlement statement, not personal financial or legal advice. See the disclaimer for the full statement, and confirm the binding figures with your conveyancer or solicitor before settlement.