Authority Updates - Victoria - November 2016

Absentee owner surcharge increase

From 1 January 2016, an absentee owner surcharge applies to Victorian land owned by an absentee owner.

This surcharge will increase from 0.5 per cent to 1.5 per cent from 1 January 2017.

If your clients own Victorian property and are currently living overseas, they must notify State Revenue Office (SRO) Victoria by 15 January 2017,   to avoid penalty tax on their 2017 land tax assessments. You can notify SRO by using the absentee owner notification portal , you will need to have your SRO customer number and either a land tax assessment or correspondence number handy. 

The absentee owner surcharge is an additional amount that applies over the land tax you pay at general and trust surcharge rates. 

What is an absentee owner?

An absentee owner is an absentee person that owns land. 

What is an absentee person?

An absentee person is one of the following:  

When will the surcharge apply?

If you are an absentee owner at 31 December, the surcharge will apply in the following land tax year.

The surcharge is calculated on the total taxable value of Victorian land you own and will be included in your Victorian land tax assessment. Depending on how and who owns the land, the surcharge could also apply to jointly owned land.

The surcharge does not apply if land is exempt from land tax or if the total taxable value of your land(s) is below the threshold.

If your land attracts special land tax, you'll pay an absentee owner flat rate of 5.5 per cent, increasing to 6.5 per cent from 1 January 2017.

For more information please refer to the SRO website or SRO will be running webinars on this topic and more, to register follow http://www.sro.vic.gov.au/events

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.