The vacant residential land tax (also referred to as the vacant residential property tax or vacancy tax) is a tax on residential properties in Melbourne’s inner and middle suburbs which are unoccupied for more than six months a year.
It is a Victorian tax, and is different to land tax, the absentee owner surcharge and the federal vacancy fee for foreign owners of residential dwellings.
Why did the Government introduce this tax?
The Government was concerned about the number of properties being left vacant across Melbourne’s inner and middle suburbs and the tax is intended to encourage land owners to make residential properties available for purchase or rent so that
Melbourne’s current housing stock is used as efficiently as possible.
Only vacant residential properties in Melbourne’s inner and middle suburbs, where the issue of housing affordability is most pressing, are subject to the tax.
How much is the tax and how is it calculated?
It is an annual tax of 1 per cent of the capital improved value (CIV) of taxable land. For example, if the taxable land has a CIV of $500,000, the tax is $5000.
The CIV of a property is a value of the land, buildings and any other capital improvements made to the property as determined by the general valuation process. It is displayed on the council rates notice for the property.
Contact us today to learn more about the Vacant Residential Land Tax in Victoria.
Bond Conveyancing Property Lawyers:-
1300 039 559