Key takeaways for sellers
- Adjustments split shared property costs by day. Council rates, water and strata are apportioned so you pay up to and including settlement day, and the buyer pays from the day after — the same rule in QLD, NSW and VIC.
- A credit lifts your payout, a debit lowers it. Charges you've prepaid past settlement are credited back to you; charges still owing are deducted from your proceeds.
- Personal utilities aren't adjusted. Electricity, gas and internet are yours to finalise and disconnect separately; they never appear on the statement of adjustments.
Why do settlement adjustments exist?
Adjustments exist so that you and the buyer each pay only for the days you actually own the property. Because most property charges are billed for a whole quarter or year, they have to be split at settlement rather than left with whoever happens to hold the bill.
You pay the property's ongoing outgoings (council rates, water and sewerage charges, and any owners corporation, body corporate or strata levies) up to and including the day of settlement; the buyer pays from the day after — the same rule in QLD, NSW and VIC. Settlement adjusts those charges so neither side pays for time the other owned the home.
How are council rates split at settlement?
Council rates are apportioned to the settlement date using your current rates notice: the yearly charge is turned into a daily rate, and you and the buyer each carry your share of the days.
To make that concrete, annual rates of $2,000 work out to roughly $5.48 a day ($2,000 ÷ 365). If you'd already paid the full year, the buyer reimburses you for every day after settlement at that daily rate; if the rates were still owing, only your share up to settlement is deducted. [illustrative figures only, not a quoted rate]
If you're behind on rates, the arrears don't follow the buyer: they're deducted from your proceeds and usually paid straight to the council at settlement through PEXA, so the buyer takes the property rates-clear.
How are water and sewerage charges adjusted?
Fixed water and sewerage service charges are apportioned to the settlement date in the same way as rates. Metered usage is trickier, because your consumption between the last meter reading and settlement hasn't been billed yet.
How that unbilled usage is handled differs by state: in NSW it's estimated from your last bill's daily average; in Queensland usage is only adjusted if the buyer pays for a special meter reading; in Victoria a special meter reading near settlement is the norm.
How are strata and body corporate levies handled?
For a unit, townhouse or apartment, the regular owners corporation, body corporate or strata levies for the current period are apportioned between you and the buyer just like rates.
Special levies are the exception worth watching. A special levy struck before the contract date is treated differently: in NSW and Queensland it's the seller's cost even if it's payable by instalments after settlement, and in Victoria it generally lands with the seller too, via the vendor statement. Check how any special levy on your property has been treated.
Is land tax adjusted when I sell?
Land tax is one of the least uniform adjustments — it depends on your state. In Victoria it can't be passed on to the buyer at all for ordinary sales (banned since January 2024 for properties under the ~$10m threshold). In NSW it's only adjusted if the contract says so — and then on a single-holding basis — though you must give the buyer a clear land tax certificate (a section 47 clearance) either way. In Queensland the default is no adjustment: the seller wears the year's land tax unless the contract elects otherwise.
What happens to rent and bond if the property is tenanted?
If you're selling with a tenant in place, prepaid rent is apportioned so the buyer is credited for the days after settlement (rent the tenant owes isn't credited to anyone). The bond doesn't change hands as money: it stays with the state bond authority and the record is transferred to the new owner after settlement.
How are the numbers actually worked out?
Your conveyancer or solicitor prepares a statement of adjustments, a single document listing each charge, its daily rate, and who owes what as at the settlement date, then finalises it with the buyer's conveyancer.
The net figure is then added to or subtracted from the amount the buyer pays at settlement. This is where the credit-versus-debit distinction matters: a credit for charges you prepaid past settlement lifts your payout, while a debit for charges still owing lowers it.
What isn't adjusted?
Not everything you pay for at the property gets split. Your personal utilities (electricity, gas and internet) are accounts in your own name, so you finalise and disconnect them yourself; they never appear on the statement of adjustments.
| Adjusted on the statement | Not adjusted (you handle it) |
|---|---|
| Council rates | Electricity |
| Water and sewerage charges | Gas |
| Owners corporation / strata levies | Internet and phone |
| Land tax, rent and bond (where applicable) | Removalists and cleaning |
What should you check on your statement?
A few quick checks catch most errors before they're locked in at settlement:
- The settlement date used is correct, because a wrong date shifts every calculation.
- Each charge matches your most recent notices.
- Metered water reflects an actual reading where possible, not just an estimate.
- Any special or one-off strata levy has been accounted for correctly.
Adjustments are usually small relative to the sale price, but errors are easy to make and hard to reverse after settlement, so review the statement carefully before the day.
General information for residential sellers in VIC, NSW and QLD, not legal advice. The exact charges and rules vary by state and council.
