لسلام عليكم ورحمة الله وبركاته ustadh, hope you are well. In Australia (and most western countries), late fees are present in every contract (in the electricity bill, water bill and other necessities etc). I don't want to fall into sin but we have no other choice. Is it fine to be apart of this?

Ustadh AbdulAziz al-Haqqan

As you said, you do not have any other choice, so there is nothing on you. Allah subhanahu wa ta'ala does not hold you accountable for something that is not in your hands or that you are not capable of.