The Croydon Shire Council north-west Queensland has decided to defer rate payments due to the drought.
At a special council meeting, councillors agreed to grant an extension to all rate categories until June 30.
Deputy Mayor Michelle Martin says they hope it will reduce some of the stress for drought-affected farmers.
"It's a hard time for them to sell cattle and get money back into their business," she said.
"We just want to take the pressure off with the rates, because they have enough difficulties right now trying to meet their costs in running their business with everything else, their loans and just the everyday life that they live - they have to buy food, pay their bills too and the power and everything like that."
She says despite some rain, the region is still struggling with seasonal conditions.
"The rain has been very patchy, some properties have had some good rain but the country needed a lot more to be able to bring it back to a good level for their cattle and for their business," she said.
"We're going to be suffering from this drought for the next couple of years to get back to where we were before the drought began and of course there is a lot of towns in the same position that we are."
© ABC 2014
13:29 EDT The Insurance Council of Australia says it remains to be seen whether two policy ideas aimed at bringing down premiums in northern Australia will have the desired effect.