New Legislation - Vacant Residential Property
Vacant residential land tax
A new legislation was only introduced into the Victorian Parliament in May 2017, homes left unoccupied for more than six months in a calendar year, which are located in 16 of Melbourne's inner and middle council areas, may attract vacant residential land tax.
This tax is designed to increase the availability and affordability of housing across 16 Council areas by encouraging home owners to rent or sell their vacant properties.
Unoccupied homes will attract an annual charge of 1 per cent of their capital improved value, which is found on annual rate notices. For example, if a property has a capital improved value of $500,000, the tax will be $5,000.
Owners of homes unoccupied for more than six months in total in 2017 that are within one of the 16 Council areas, must notify the State Revenue Office ASAP.
Some homes are exempt from the tax, including those that changed ownership or were built during the year. More information, including a list of exemptions, is available at SRO website.
The SRO's compliance program will look at both non-reporting of vacant properties and incorrect exemption claims.
Understanding vacant residential land tax
To help you understand your obligations, the SRO website includes:
The SRO are also running interactive webinars over the coming weeks, with experts who can answer your questions about the tax.