A Queensland council is moving forward with the sale of 24 homes, including several occupied by First Nations families, to recover more than $1 million in unpaid rates. The properties, located in the rural city of Mount Isa, are owned by the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICWS), a not-for-profit organization that has accumulated significant outstanding debts over the past three years.

The first auction was held on Tuesday, with 10 properties sold for a total of $1.13 million. While some of the homes auctioned belong to ATSICWS, others do not. Queensland law permits local councils to sell land if rates or charges remain unpaid for at least three years, a provision the Mount Isa City Council has invoked after repeated attempts to recover the debts.

The council stated it had contacted the ATSICWS board through multiple channels—including mail, email, text, and phone calls—over a three-year period without receiving an explanation for the unpaid rates. A spokesperson expressed concern that, despite collecting rent from tenants, the corporation had not paid for rates, water supply, or waste collection services, resulting in an outstanding debt estimated at approximately $1.2 million.

Several families living in the affected homes said they were not informed about the unpaid debts until five months ago. Leonie Reading, whose husband is a traditional owner in northwest Queensland, has lived in her home with her three children for more than a decade. She learned only recently that ATSICWS had failed to pay the council, and she fears eviction with no clear alternative housing options. Reading, who is terminally ill, described the situation as “dire” and expressed frustration after seeking assistance from government officials, including local MPs and ministers, without success.

Another resident, Kerry Major, said she had stopped paying rent two and a half years ago due to the organization's failure to maintain her home. Major reported living without basic amenities such as hot water, a functioning stove, and adequate maintenance. She warned that the auctioning of these homes could leave many Indigenous families homeless, highlighting that securing private rentals in Mount Isa is “near impossible.” Major also noted the broader impact on extended family networks connected to the affected households.

ATSICWS was fined $15,000 in August 2025 following a conviction for multiple breaches of the Corporations (Aboriginal and Torres Strait Islander) Act 2006, specifically for failing to lodge annual reports with the Registrar of Aboriginal and Torres Strait Islander Corporations. The corporation’s director declined to comment on the matter when contacted.

The council initially planned to auction all 24 properties starting from July this year, including 15 homes currently occupied by Aboriginal families. The growing concern among residents is that the forced sales will exacerbate housing insecurity for Indigenous communities in the region, where alternative accommodations remain scarce.