Twenty-four homes in Mount Isa, Queensland, are being auctioned by Mount Isa City Council because of more than $1 million in unpaid council rates, creating uncertainty for First Nations families living in some of the properties. The homes are owned by the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICWS), a not-for-profit organisation. The issue was reported today, 8 September 2026.

The council's scheduled property auctions began at the Mount Isa Civic Centre on Tuesday and are continuing across three days, from 8 to 10 September. Council says the auctions are being conducted under Queensland's local government legislation because rates and charges on the properties remain unpaid.

The situation has raised concerns because some of the properties are occupied by First Nations families who could face losing their homes if the properties are sold. Residents interviewed about the issue have described uncertainty over where they would live if their homes were purchased by new owners.

According to reporting published today, the unpaid rates accumulated over about three years and total more than $1 million. The first group of auctions has already generated more than $1 million in sales, with the first 10 properties reportedly raising about $1.13 million.

The homes are connected to ATSICWS, which has faced financial and administrative difficulties. Some residents have raised concerns about the condition and maintenance of the properties, saying repairs and basic services have not always been adequately provided. One resident told reporters that poor maintenance contributed to difficulties paying rent.

The issue has attracted political attention, with Independent Senator Lidia Thorpe criticising the lack of an earlier intervention to protect the properties and their occupants. She suggested government action could potentially have prevented the homes from reaching the auction stage.

The Queensland Government has said it was not approached to purchase the properties but is working with local organisations to help people affected by the situation. The government response is focused on trying to reduce the risk of homelessness for residents who may be displaced by the sales.

Mount Isa City Council has separately confirmed that properties included in its overdue-rates auction can be withdrawn if outstanding rates and charges are paid before the relevant auction. The council has also warned members of the public not to trespass on properties listed for sale.

The dispute highlights the difficult consequences that can arise when unpaid council rates accumulate on properties occupied by vulnerable households. While councils have legal mechanisms to recover unpaid rates, selling occupied homes can create significant social consequences for residents who may have little control over the financial affairs of the property owner.

For affected families, the immediate concern is housing security and finding alternative accommodation if their homes are sold. Local support services and government agencies are now facing pressure to assist residents who could be displaced.

The Mount Isa auctions will continue through Thursday, with properties potentially withdrawn if outstanding amounts are paid before their scheduled sale.