Water Rates

In some country areas the water rates are paid to council and may be incorporated within the council rates. In other areas, where a separate water authority supplies the water and or sewer, an adjustment of these rates must be made at settlement. Water rates are usually quarterly rates and the adjustment made will only be for the current quarter. The same principals apply to water rates as they do for council rates. A water usage charge may have to be paid by the vendor. To assess whether a charge is payable or not can be done in one of two ways:

1.) A meter reading can be organised, this will cost whoever organises it whatever the authority charges for a meter reading.

2.) An estimate can be done, by using the last quarter’s water usage charge.

It is usual to use the estimate system to calculate the usage charge because quite often the cost of having the meter read is more than the charge itself. The seller will make an allowance to the purchaser for the usage charge so that when the actual bill for water usage is received the whole bill becomes the purchaser’s responsibility.