Understanding Vacant Residential Land Tax and Absentee Owner Surcharge. What it is and are you liable for it?
Vacant Residential Land Tax
As part of the Victorian Government coronavirus relief measures, vacant residential land tax was waived in 2021, but re-commenced in 2022.
Where your property is located certain municipal areas in inner and middle Melbourne, you may need to notify the State Revenue Office if your property is vacant for more than six months in the preceding calendar year. The six months of occupancy need not be continuous and is assessed by calendar year from 1 January to 31 December.
The vacant residential land tax is separate to land tax and absentee owner surcharge.
For more information about vacant residential land tax please read our earlier blog here.
If you haven’t already notified the State Revenue Office, you should consider this immediately, with all notifications due by 15 January.
Failure to notify the State Revenue Office may result in penalties.
Absentee Owner Surcharge
An absentee owner surcharge (currently 2%) applies to Victorian land owned by an absentee individual, corporation or trust.
The absentee owner surcharge is an amount that applies additionally over the land tax you pay at general or trust surcharge rates.
Who is an Absentee Owner?
You are considered an Absentee Individual Owner if you:
- Are not an Australian citizen or permanent resident
- Do not ordinarily reside in Australia
- Was absent from Australia on 31 December the year prior to the tax year or for more than 6 months in the calendar year prior to the tax year
You are an Absentee Corporation Owner if:
- The company is incorporated outside Australia; or
- An absentee individual has a controlling interest
You are an Absentee Trust Owner if:
- At least one beneficiary is an absentee individual
You may need to notify the State Revenue Office if you are an absentee owner.
If you haven’t already notified the State Revenue Office, you should consider this immediately, with all notifications due by 15 January.
Failure to notify the State Revenue Office may result in penalties.
How our property lawyers can help you
If you’re not sure if you are liable for vacant residential land tax or absentee owner surcharge and/or need assistance with your notification to the State Revenue Office if you are liable, please contact us today on + 61 3 9822 8588.
Our team of property lawyers, including an accredited specialist have assisted many clients in regard to their vacant residential land tax and absentee owner surcharge.
To find out how our property lawyers can help you, contact us today +61 3 9822 8588.
