A Supreme Court ruling has stopped one council from increasing rates on rental owners, which several other regions have already done.

Supreme Court Justice Duncan McMeekin has ruled against the Mackay Regional Council's plane to hit owners of rental properties for an extra $200 in rates per year.

The judge said the rate increase was not “a rational exercise of the power vested in the Council.”

His ruling said it was “impermissible” to have a process where “the amount of rates paid in respect of a given parcel of land should vary dependent upon its owner from time to time.”

A number of north Queensland investors appealed against the rate rise, and say that their legal win is a victory for homeowners and renters state-wide.

The same levy increases have already been imposed on 12 other councils across Queensland, and it is unclear what the implications for those councils are.

One of the appellants, Ayril Paton, said it shows people do not simply have to accept whatever new fees are levied.

“I think people across the board need to have a look and see if something isn't right, just because the government or council say this is how it's got to be, it isn't necessarily so,” he said.

But it may not mean returns for every investor who had to pay the fee before the ruling.

“Unfortunately the way Queensland law works we weren’t able to have it as a full class action,” Mr Paton said.

“What we're hoping is that if I’ve been able to get my costs back, that extra cost I was charged, it should be the case that everybody can approach council and say; ‘Well if he got it so should I’,” he added.

Rockhampton Shire is reportedly reviewing the decision in relation to their own rates.