The State Revenue Office of Victoria (SRO) has advised that ‘notifications’ due on 15 January 2019, for the following Victorian taxes:
- The vacant residential land tax – a tax imposed on the owners of land (in 16 Council areas), if that land has been relevantly ‘vacant’ for more than 6 (non-continuous) months in the preceding year. The tax is imposed at 1% of the ‘Capital Improved Value’. This tax is different from (and additional to) land tax, the absentee owner surcharge and the federal annual vacancy fee. The 16 Councils are: Banyule, Bayside, Boroondara, Darwin, Glen Eira, Hobsons Bay, Manningham, Maribyrnong, Melbourne, Monash, Port Phillip, Stonnington, Whitehorse, and Yarra.
- The absentee owner surcharge – which is a ‘surcharge’ on top of Land Tax (when applicable) of 1.5% of the taxable value of the land. It applies to ‘absentee owners’. In the case of an individual, this is a person who (1) not an Australian citizen or permanent resident; (2) does not ordinarily reside in Australia; and (3) was absent from Australia: on 31 December of the year prior to the tax year, or for more than six months in total in the calendar year prior to the tax year. Absentee Corporations and Trusts, are built on the same definition. This tax is similarly different from the other taxes mentioned above.
These taxes are imposed on making the relevant ‘nomination’ that the tax is applicable or subsequently on a voluntary disclosures and on the conclusion of an audits (with graded penalties).
If taxpayers made a notification last year, they only need to make a new one if their circumstances have changed.
Clearance certificate payment options delayed – The SRO says new options for paying the tax listed on land tax clearance certificates have been delayed and will now be available in early 2019. Once the new options are available, certificates will allow taxpayers to pay by credit card or BPAY.
[LTN 233, 3/12/18; Tax Month – December 2018]
CPD (Comprehension) questions
- When are these notifications due?
- What is the point of these notifications?
- When is the vacant residential tax payable?
- Does it matter whether the owner is not a resident?
- How much is the tax?
- On what is the ‘absentee owner surcharge’ a surcharge?
- How much is the surcharge?
- Is it payable on all land?
- When is it payable?
- What is an ‘absentee individual’?