From 1 January 2018, homes located in 16 specific council areas that are left unoccupied for more than six months of the previous calendar year, attract the Victorian Government’s vacant residential land tax. It is different to the absentee owner surcharge and the federal annual vacancy charge and is of 1% of the capital improved value of taxable land. The value is the same as displayed on council rates notices.
Land that is exempt from land tax because it is used as the principal place of residence of the land owner, or where the land owner is temporarily absent from their principal place of residence, is not subject to the vacant residential land tax. Other exemptions (subject to eligibility) include:
- Holiday homes (limited to one per owner)
- City apartments used for work purposes
- Property changed hand in previous year
- New residential properties
Owners of vacant residential properties are required to notify the State Revenue Office by 15 January each year via an online portal. If a property is eligible for an exemption, the land owner is required to notify the State Revenue Office and advise which exemption applies.
For more information, please visit:
https://www.sro.vic.gov.au/node/5816
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