THOUSANDS of Queensland ratepayers could be entitled to a refund after a landmark court ruling found one council failed to properly issue its annual rates and charges.

Brisbane Supreme Court Justice David Jackson found Fraser Coast Regional Council had issued three years' worth of invalid rates because, since 2014-15, it failed to pass a separate resolution to levy its rates and charges during its annual budget meetings.

Legal experts warn the decision could leave other Queensland councils exposed to refunds if they did not pass an annual resolution to levy rates and charges, unless there is a retrospective law change or successful court appeal.

Mayor Tracy Dobie said the Southern Downs Regional Council was confident the same mistake had not been made in the Southern Downs.

"We are confident we haven't we haven't made a similar mistake like this in the past however we have sought legal advice to ensure that is the case,” Cr Dobie said.

"I think we are very lucky - we have a very good CEO and very capable and experienced minutes taker in our meetings and that means we're unlikely to make that sort of mistake.

"Having an understanding of the Local Government Act and good meeting procedures, and assuring we're conscious of that means we have very good governance.”

Cr Dobie said she was aware of an audit of all councils being conducted by the Local Government Association of Queensland, but did not know the details.

LGAQ CEO Greg Hallam said the audit was to reinforce the group's view that the Supreme Court ruling would not affect other Queensland councils.

"The LGAQ is confident the Supreme Court's decision relating to rates and charges levied by the Fraser Coast Regional Council has no implications for other Queensland councils,” Mr Hallam said.

"We are keeping all major parties briefed should a resolution of the issue regarding Fraser Coast Regional Council need a legislative response.”

The landmark ruling occurred after a rural services company was taken to court by the Fraser Coast Council over unpaid rates.

Linville Holdings successfully argued its rates bills were invalid because the council failed to pass the separate resolution each year.

Lawyer David Hinton, who ran the winning case, said the winning case had the potential to affect all ratepayers in the Fraser Coast

"I'd suspect that if people think they may have a chance of getting out of paying some rates, they'll probably jump at the opportunity,” Mr Hinton said.

"It's not necessarily an issue that's restricted just to this council region. It could obviously apply to other councils as well.”

Additional reporting from the Courier-Mail