Mount Isa ATSICFWS properties sold at auction after $1 million in unpaid rates

Kerry Major had spent months wondering how she would find out if her Mount Isa home had been sold. The answer came to her front door.

"I didn't get the phone call," Ms Major said.

Ms Major's home was one of 25 properties owned by the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICFWS) caught up in an unpaid-rates saga that left dozens of Mount Isa residents facing an uncertain future.

This week, every one of those properties sold.

Who holds their future?

The homes were among 33 properties Mount Isa City Council put up for auction over three days.

Every property met its reserve, with the sales totalling $4.95 million.

Council director of corporate services Kelvin Tytherleigh said buyers were a mix of investors and owner-occupiers.

About 60 per cent of successful buyers during the first part of the auctions were locals, while others came from Townsville, Brisbane, New South Wales and Victoria.

One investor who bought three properties told council they were keen to keep the existing tenants.

For other residents, their future will depend on arrangements reached with their new landlords.

"It's a matter now for the purchaser, the new owner, to liaise with the tenant, if there is one and, following the tenancy laws that exist in Queensland, come to an arrangement," Mr Tytherleigh said.

Some residents have already moved out, while others remain and want to stay.

Settlements are expected across October.

Almost $1 million in unpaid rates

Council moved to auction the ATSICFWS properties earlier this year after the corporation accrued almost $1 million in unpaid rates.

Of the 25 properties, 15 were occupied by roughly 50 residents, while the remaining 10 were unattended.

Residents across the occupied properties were understood to have continued paying rent to the corporation, leaving many unaware of the problems unfolding behind the scenes.

Under Queensland legislation, councils can sell properties when rates remain unpaid for more than three years.

The auctions were originally slated for July before being rescheduled for September.

Internal documents released in August revealed the auctions were pushed back in the hope alternative arrangements involving local, state and federal governments could be reached.

No government ultimately cleared the debt.

ATSICFWS had also faced compliance action from the Office of the Registrar of Indigenous Corporations, which issued it a $15,000 penalty in 2025 for failing to lodge financial reports dating back to 2018.

Ms Major also tried to keep her home off the auction block.

"As a tenant, I was keen to draw from my super to try and pay my rates, which was $27,000 at that time," she said.

She said she was eventually told a caveat was on the property title, so it wasn't viable.

The house remained on the auction list.

Council expects to recover $2.2m

The wider auction process began with 48 properties, but some owners cleared their debts before the sales.

The remaining 33 attracted 96 registered bidders on the first day, 56 on the second and 75 on the final day.

Mr Tytherleigh estimated council would recover about $2.2 million from the process, with the final figure dependent on auctioneer, legal and other recovery costs.

Council can retain outstanding rates and reasonable costs associated with the sales, with other liabilities paid before any remaining proceeds are returned to the former owner.

'A big reprieve'

For Ms Major, the sale has brought a different kind of uncertainty.

She does not yet know whether she can stay in the home she has lived in since 2017.

But after meeting the woman who bought it, she believes an agreement may be possible.

"It's a big reprieve," she said.