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Mount Isa Council Auctions Homes Amid Unpaid Rates Dispute

Mount Isa City Council is auctioning 24 homes, potentially displacing First Nations families, to recover nearly $1 million in unpaid rates from a welfare services corporation.

  • Mount Isa City Council is auctioning 24 homes, with the first 10 going to auction today, 8 September 2026.
  • The homes are owned by the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICWS), which owes almost $1 million in unpaid rates over five years.
  • Residents claim they were unaware of the debt until five months ago, and some have not paid rent due to a lack of maintenance by ATSICWS.

A rural Queensland council is auctioning off 24 homes in Mount Isa to recover nearly $1 million in unpaid rates, a move that could lead to the homelessness of First Nations families. The first 10 properties are being put up for auction today, Tuesday 8 September 2026.

The homes are owned by the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICWS), a not-for-profit organisation that has accumulated almost $1 million in unpaid rates over five years. Residents, some of whom have lived in their homes for over a decade, claim they were only informed of the debt five months ago.

Leonie Reading, who has lived in her home for 11 years with her three children, stated she was told in April that ATSICWS had not paid rates since 2021. Kerry Major, another resident facing eviction, said she had not paid rent for two and a half years due to ATSICWS failing to undertake maintenance on her home, including issues with hot water and a stove.

The Minister for Indigenous Australians, Malarndirri McCarthy, visited Mount Isa last week but informed residents that the Commonwealth government has been unable to find a resolution to stop the auctions. Independent Senator Lidia Thorpe has called for the federal government to purchase the homes under the Lands Acquisitions Act 1989, stating they could have secured the homes for 15 families for $600,000.

A spokesperson for Queensland’s Department of Housing and Public Works confirmed they had not been approached by ATSICWS or the council to acquire the properties. The department is working with local service providers to support affected tenants.

Why this matters: The auctions could result in First Nations families being forced into homelessness due to a charity's unpaid rates, despite government efforts to find a resolution.

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