Council Rates and Water Rates – What Can I Claim?
You may be able to salary package eligible living expenses that do not attract GST, including council rates and water rates. To claim these expenses, you must provide acceptable documentation showing that the expense was incurred and paid by you or your spouse/de facto partner.
What you can claim
- Council rates
- Water rates
What you can't claim
- Expenses paid entirely by someone other than you or your spouse/de facto partner
- Fines, penalties, and expiation notices
- Receipts or invoices provided in a language other than English
Documentation Requirements
Proof of Purchase
Acceptable documentation includes a tax invoice or utility bill that shows:
- The invoice or purchase date
- A description of the expense incurred
- The amount charged
- The name of the employee or their spouse/de facto partner
Proof of Payment
Acceptable proof of payment documents include:
- Direct debit confirmations
- Tax invoices that show payment details
- EFT receipts with the matching tax invoice
- Bank statements showing the transaction
Proof of payment must be linked to the proof of purchase. This link can be established through matching details such as:
- The payment amount
- The transaction date and time
- The merchant or supplier name
Examples of Documentation That Cannot Be Accepted
Documentation may be rejected where:
- The expense cannot be clearly identified
- An EFTPOS receipt is provided without the supporting tax invoice
- The expense is not an eligible council rates or water expenses
- The receipt or invoice is not in English
- The tax invoice is not in your, your partner or spouse's name
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Scenario-Based Examples
Can I claim my council rates notice?
Rachel receives a council rates notice for her home and pays the amount owing. She submits the rates notice and proof of payment. The expense is eligible because council rates were incurred and paid by Rachel.*
Can I claim my water rates bill?
Marcus pays his quarterly water rates bill and provides the bill along with proof of payment. The expense is eligible as water rates are an approved living expense that was incurred and paid by Marcus.*
Can I claim a bill that was paid by my parent?
Daniel's council rates notice was paid entirely by his parent. Because Daniel did not pay the expense, he cannot claim it through salary packaging.*
Can I claim a rates bill that is in my spouse's name?
Tanya's council rates notice is issued in her partner's name. Tanya provides evidence showing that she and her partner paid the bill. The expense may be claimed because the payment was made by Tanya or her spouse/de facto partner.*
Can I submit a utility bill written in another language?
Priya submits a utility bill issued in a language other than English. The document cannot be accepted because all supporting documentation must be in English.*