Vacant Residential Property Tax

vacant residential property taxThe Victorian Government has announced it intends to introduce a Vacant Residential Property Tax (VRPT).

The VRPT will be levied on dwellings that are vacant for more than a total of 6 months in a calendar year.

The new proposed tax will be self-reporting. That is, owners of vacant residential property will be required to notify the State Revenue Office of any vacant properties that they own.

The VPRT will apply annually at a rate of 1 % of the property’s capital improved value (CIV), and be payable on a calendar-year basis – as with land tax.

There will be specific exemptions, including for holiday homes (owned by those with a principal place of residence in Australia), a city unit for work purposes, properties in deceased estates and homes subject to legitimate temporary absences (e.g. medical care, overseas appointments).

Subject to the passage of the State Taxation Acts Amendment Bill 2017, the VRPT will apply from 1 January 2018.

More detailed information about the design of the tax will be released in the coming months.

If you want to know more about this change, contact Noel or Amanda on 9585 7555 oremail us.

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